ICAP CEO Michael Spencer said an internal probe into allegations brokers manipulated ISDAFix, the benchmark for the $379 trillion swaps market, found no evidence of wrongdoing.
The Commodity Futures Trading Commission is investigating employees at ICAP’s U.S. interest-rate swap desk as well as at least 15 banks over allegations they colluded to create inaccurate quotes to a computer screen used by the industry to price swaps to inflate bank profits, Bloomberg reported April 8.
The news organisation reports that ISDAFix is based on submissions made to ICAP’s New Jersey office each day and displayed on an electronic screen known as 19901, which is used by corporate treasurers, asset managers and other market participants as a measure of wholesale funding costs.
Regulators are investigating potential abuse of financial benchmarks.
'So far, nothing that we have discovered in our internal investigations gives me sleepless nights, and nothing that I’ve heard externally suggests ISDAFix has been tampered with', Spencer told reporters on a conference call as the London-based inter-dealer broker reported full-year earnings Tuesday. 'We have adhered to our procedures, so I would refute, at this moment, that there has been any misconduct by ICAP brokers'.
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