7th Nov 2014 08:45
LONDON (Alliance News) - UK regulators are investigating Tullett Prebon PLC over trades made by former employees, the interdealer broker said on Friday.
In an interim management statement, Tullett Prebon said the Financial Conduct Authority is investigating wash trades made by two of its former employees. Last month, the UK's Serious Fraud Office issued criminal proceedings against one of those former employeers, Noel Cryan, in connection with the manipulation of Libor.
It is alleged he conspired to defraud between February 1, 2009 and December 3, 2009.
Wash trades are trades that are risk free, with no commercial rationale or economic purpose. However, brokerage is paid on them.
"As part of this investigation the company continues to cooperate with regulators and government agencies," Tullett Prebon said.
Tullett Prebon said it is "cooperating fully" with requests made by the FCA and other regulators and other agencies for information in connection with their investigations into alleged Libor manipulation.
The news came as Tullett Prebon said that recent market volatility had helped to boost activity in financial markets in recent weeks, though it still reported a fall in reported revenue in September and October compared with the same months last year.
Tullett Prebon shares were down 1.7% at 276.00 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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