ICAP responds to reports of CFTC probe

ICAP on Tuesday responded to reports it was being investigated for claims of price manipulation of benchmark interest-rate swaps.

The Commodity Future Trading Commission (CFTC) has issued subpoenas to ICAP brokers and as many as 15 Wall Street banks, Bloomberg reported.

The regulator plans to interview about a 12 current and former brokers at ICAP's Jersey City, New Jersey, office as well as dealers that contribute prices used to set the daily ISDAfix swap rates, a source told the financial news agency.

It is looking into whether ICP broker are conspiring with dealers who stand to profit from inaccurate quotes, including failing to update published market prices after trades occur.

However, ICAP said it was unaware of allegations and was cooperating with the CFTC in its probe.

"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," the company said in a statement.

The Federal Reserve includes the ISDAfix levels in a daily report on money-market rates. ISDAfix is used to determine borrowing costs and to value much of the $379trn of outstanding interest-rate swaps globally.

RD