Tag: ISDAfix

ISDAfix

CFTC Hands Out Fines to Deutsche Bank, UBS, BNP Paribas

The US Commodity Futures Trading Commission (CFTC) has fined Deutsche Bank $70 million for attempted manipulation of the ISDAFIX benchmark and $30 million for manipulation, attempted manipulation, and spoofing in the precious metals futures markets. UBS has also been fined $15 million for attempted manipulation and spoofing in the same markets.

One of the CFTC Orders finds that over a five-year period, beginning in at least January 2007 and continuing through May 2012, Deutsche Bank Securities (DBSI) made false reports and through the acts of multiple traders, attempted to manipulate the US Dollar International Swaps and Derivatives Association Fix (USD ISDAFIX),

BoA Latest to Settle with CFTC Over ISDAFIX

Bank of America (BoA) has become the latest firm to settle with the Commodity Futures Trading Commission (CFTC) over the attempted manipulation of the ISDAFIX benchmark, agreeing to pay a $30 million civil monetary penalty.

The CFTC Order finds that, beginning in January 2007 and continuing through December 2012, BoA made false reports and attempted to manipulate the US dollar International Swaps and Derivatives Association Fix (USD ISDAFIX) in order to benefit its derivatives positions, including positions involving cash-settled options on interest rate swaps and interest rate swap futures.

James McDonald, CFTC Director of Enforcement, comments: “This marks the ninth CFTC enforcement action involving manipulative conduct in connection with the USD ISDAFIX benchmark. As this case shows, the Commission will continue to work vigilantly to ensure the integrity of critical financial benchmarks and hold all wrongdoers accountable, no matter how widespread the misconduct.”

NEX Group Subsidiary Agrees $50m Settlement Over ISDAFIX Manipulation

Intercapital Capital Markets (Intercapital), a NEX Group subsidiary formerly known as ICAP Capital Markets (ICAP), has agreed a $50 million settlement with the US Commodity Futures Trading Commission (CFTC) in relation to allegations that some of its brokers aided and abetted attempts by several of its bank clients to manipulate the ISDAFIX benchmark.

A CFTC order issued today finds that over more than five years, beginning in at least January 2007 and continuing through December 2012, ICAP’s swaps brokers were regularly enlisted by traders at bank clients to assist in attempting to manipulate the US dollar International Swaps and Derivatives Association Fix (USD ISDAFIX) for the benefit of their bank clients’ derivatives positions, including positions involving cash-settled options on interest rate swaps.

CFTC Fines JP Morgan Over ISDAFix

The US Commodity Futures Trading Commission has issued an Order simultaneously filing and settling charges against JP Morgan for what it says was the attempted manipulation and “muscling” of the US dollar ISDAFix 11am benchmark including the submitting of false rates. The order also requires the bank to pay a $65 million civil monetary penalty and is related to actions undertaken by certain of its traders over a five-year period, beginning in at least January 2007 and continuing through January 2012.

Deutsche Fined $70m for Benchmark Manipulation

The Commodity Futures Trading Commission (CFTC) has fined Deutsche Bank Securities (DBSI) $70 million for attempted manipulation of the USD ISDAFIX benchmark.

The CFTC Order finds that over a five-year period, beginning in at least January 2007 and continuing through May 2012, DBSI made false reports and through the acts of multiple traders attempted to manipulate the US dollar International Swaps and Derivatives Association Fix (USD ISDAFIX), a leading global benchmark referenced in a range of interest rate products, to benefit its derivatives positions, including positions involving cash-settled options on interest rate swaps.

James McDonald, CFTC director of enforcement, comments: “This action reflects the CFTC’s continued and vigilant commitment to protect those who rely on the integrity of critical financial benchmarks. There is no room in our markets for manipulation – we will continue to work hard to stamp it out, wherever we find it.”

CFTC Fines RBS Over ISDAfix

The US Commodity Futures Trading Commission has issued an Order filing and settling charges against The Royal Bank of Scotland for attempted manipulation of the ISDAfix benchmark.
The Order requires RBS to pay an $85 million civil monetary penaltyafter it finds that over a five-year period, beginning in January 2007 and continuing through March 2012, the bank, through the acts of multiple traders, attempted to manipulate the US Dollar International Swaps and Derivatives Association Fix, a global benchmark reference in a range of interest rate products.

Goldman Settles with CFTC Over ISDAfix Manipulation

Goldman Sachs has paid a $120 million fine after settling with the US Commodity Futures Trading Commission (CFTC) over accusations its traders attempted to manipulate the ISDAfix interest rate benchmark setting. Goldman neither admitted nor denied the charges in settling.
The CFTC issued an Order finding that, beginning in January 2007 and continuing through March 2012 Goldman attempted, by and through certain of its traders in New York, on many occasions to manipulate and made false reports concerning the US Dollar ISDAfix. It adds that Goldman’s “unlawful conduct” involved multiple traders, including the head of the bank’s interest rate products trading group in the US.