Tullett Prebon subject of wash trades probe

Tullett Prebon has confirmed that the City watchdog is investigating its use of wash trades, or deals used purely to trigger a fee for the brokerage.

The Daily Telegraph reports that the interdealer broker said the Financial Conduct Authority was looking into 'certain 'wash trades' (trades that are risk free, with no commercial rationale or economic purpose, on which brokerage is paid) carried out by two former employees”.

Wash trades can be used for legitimate reasons, but the FCA has previously found examples of such deals being carried out to win favours with brokers and cover up corrupt payments. The FSA, the regulator's predecessor, cited more than two-dozen wash trades when it fined RBS £87.5m for its role in Libor manipulation in 2013.

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Tullett Prebon confirms FCA investigation into its 'wash trades'

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