Advertisement

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.

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
Why the moving average is my favourite charting tool
Sponsored

Why the moving average is my favourite charting tool

Traders and technical analysts use "moving averages" to iron out daily fluctuations and give a much clearer picture of a market's direction. Dominic …
13 Jul 2020