CFTC Fines Royal Bank of Scotland $85 Million Over Attempted Manipulation of Interest-Rate Benchmark
February 03 2017 - 11:17AM
Dow Jones News
By Katy Burne
The Commodity Futures Trading Commission ordered Royal Bank of
Scotland Group PLC to pay $85 million to settle charges that it
attempted to rig a key pricing gauge for derivatives in the years
surrounding the financial crisis.
The civil penalty on Friday marks the latest enforcement action
over banks' attempted manipulation of global financial benchmarks.
In it, the CFTC charged RBS with trying to rig the rate, called
ISDAFIX, over a five-year period from January 2007 to March
2012.
The agency said the bank acted through an unidentified
derivatives broker, whose job it was to poll market participants
daily for an 11 a.m. repricing of the benchmark. It said the bank's
aim was to benefit its own trading positions, whose values were set
off the rate.
Under the order, RBS agreed to implement new controls to ensure
the integrity of its participation in setting interest-rate
benchmarks.
Write to Katy Burne at katy.burne@wsj.com
(END) Dow Jones Newswires
February 03, 2017 11:02 ET (16:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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