4th Feb 2015 10:58
LONDON (Alliance News) - Interdealer broker ICAP PLC Wednesday said it will challenge the European Commission's decision to fine it EUR15 million for "participation in several cartels in Yen interest rate derivatives".
According to the European Commission, the fine was due to a breach of antitrust rules by facilitating several cartels in the sector of Yen interest rate derivatives.
"Today's decision to fine the broker ICAP sends a strong signal that assisting companies in their cartel activities has severe consequences. It marks the successful completion of our antitrust investigation in the Yen interest rate derivatives sector ? but not the end to our efforts to fight anticompetitive practices in financial markets," Commissioner Margrethe Vestager, who is in charge of competition policy, said in a statement.
The fine follows EUR669.7 million of fines imposed on banks comprising UBS, RBS, Deutsche Bank, Citigroup, and JPMorgan in December 2013. That fine also included broker RP Martin, which has since been bought by US interdealer broker BGC Partners. However, ICAP opted against settling the case.
ICAP responded strongly to the fine imposed by the European Commission, saying it does not accept the decision, which it believe to be "wrong both in fact and in law".
"This is a regulatory matter that has already been settled. It is not a competition issue, and the EC has presented no evidence that ICAP facilitated a competition law violation. ICAP will be challenging this decision at appeal in the European Courts," ICAP said.
"This allegation relates to Yen Libor and is based on the same underlying matters that ICAP Europe Ltd, a subsidiary of ICAP's global broking division, settled with [UK regulator] the Financial Conduct Authority and the US Commodity Futures Trading Commission (CFTC) in September 2013," ICAP added.
In September 2013, ICAP Europe Ltd was fined GBP14 million by the FCA for misconduct relating to the London interbank offered rate (Libor), when it was also ordered to pay USD65 million by the US CFTC as it was charged with with manipulation and attempted manipulation of Yen Libor
ICAP shares were up 0.1% at 475.10 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
IAP.L