10th Jun 2014 10:30
LONDON (Alliance News) - Brokerage ICAP PLC could now be hit by fines from the European Commission over the manipulation of YEN Libor rates, after it said it had received a so-called statement of objections from the EU's executive body, which it intends to fight vigorously.
The company has already been fined by US and UK regulators, which said its brokers helped certain bank traders to manipulate the Japanese YEN London interbank offered rate.
A statement of objections is a formal step in European Commission antitrust investigations in
which the Commission informs the parties concerned in writing of the objections raised
against them.
"The company today received a statement of objections from the European Commission, alleging that ICAP acted as a facilitator to breaches of EU competition law by certain banks in relation to Yen Libor for isolated periods between 2007 and 2010," ICAP said in a statement.
"ICAP does not believe that it has breached any applicable EU competition law, and will defend itself against these allegations vigorously," it added.
The brokerage confirmed that the allegations made in the Commission's statement relate to the same underlying matters that it settled with UK and US regulators in September 2013.
It was fined GBP55 million by UK and US regulators over the manipulation of YEN Libor rates by its brokers from at least October 2006 through at least January 2011.
ICAP was the first broker to be fined by the Financial Conduct Authority and the Commodity Futures Trading Commission in relation to rigging Libor, an interest rate that acts as the benchmark for at least USD350 trillion in derivatives and other financial products.
ICAP shares were down 0.2% at 401.20 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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