ICAP probed by US regulators on fiddle claim
10 April 2013 2:03am
SHARES in top brokerage ICAP plunged yesterday morning before recovering over a volatile day after it was forced to deny allegations it is embroiled in a market-rigging investigation with US regulators.
The Commodity Futures Trading Commission (CFTC) is investigating possible wrongdoing related to ISDAfix, a key swaps benchmark.
Trillions of dollars-worth of swaps are priced from the index, and the authorities are thought to be investigating claims that brokers manipulated the rates.
The CFTC issued subpoenas to ICAP as well as most of the 16 global banks involved in setting the rate, looking for more information according to Bloomberg.
But ICAP defended itself against the claims yesterday.
“ICAP does not make submissions to ISDAfix. ICAP is involved in the administration of part of the ISDAfix process, and is cooperating with the CFTC’s wider inquiry into this area. ICAP maintains policies that prohibit any of the behaviour that has been alleged in the media,” the brokerage said in a statement. ICAP had no knowledge of the allegations prior to the media speculation, and is investigating them. Until those investigations are complete we will not make any further comment.”
Sixteen of the world’s biggest banks submit rates for the benchmark, including British banks Barclays, RBS, HSBC, American lender JP Morgan and German giant Deutsche Bank.
They enter prices for given swaps each day to determine the index’s level, and rival brokerages claim traders and brokers could have colluded to adjust rates for their own gain, as with Libor. All of the banks contacted by City A.M. declined to comment. The CFTC declined to give more details. ICAP’s shares ended the day up 1.09 per cent.
In other news
Graduates should be awarded point scores alongside the existing degree grades, a new report has said, something [Read more]
Banks are finally starting to lend to Britain's small and medium sized businesses new data has shown, suggesting [Read more]
Just eight years ago, there was no iPhone, while a mere decade ago, half of all Britain's internet connections [Read more]
The nationwide rail strike, called off at the 11th hour last week, has been rescheduled for next week. [Read more]
Women's teams will feature on the forthcoming Fifa '16 video games - marking the first time women's football has [Read more]
Just a day after the Queen's Speech confirmed what we knew the Tories would have to do, a bill has dropped into [Read more]
Avago Technologies has sealed a $37bn acquisition of fellow semiconductor company Broadcom to create an industry [Read more]
Russian President Vladimir Putin has accused the United States of meddling in affairs beyond its jurisdiction [Read more]
The UK's GDP increased by 0.3 per cent in the first quarter of 2015, according to the latest figures from the [Read more]
Five people were arrested after the anti-austerity protest in Whitehall and Trafalgar Square turned voilent yesterday. [Read more]
Claire Perry has said “at times, the delays and disruption that are occurring are simply inexcusable.” [Read more]
Like electing a boss of Fifa whose surname isn’t Blatter or extracting an apology from Thomas Cook, reforming [Read more]
Britain's FinTech sector is a particularly bright spot in the UK’s recovering economy. Investment in London [Read more]
Currency volatility did Kingfisher no favours in the first quarter of 2015, but investors have not been put off. [Read more]
Power systems manufacturer Rolls-Royce has signed an €80m (£57m) contract with General Dynamics European Land [Read more]
Tool hire giant HSS saw its shares rise yesterday after reporting first-quarter trading in line with expectations.