FSA, CFTC Fine Barclays Almost $300M for LIBOR, EURIBOR Manipulation
![fine fine](/sites/default/files/styles/landscape_750_463/public/import/IMG/739/218739/fine.JPG.webp?h=f32b8e25&itok=EJrrXSIv)
UK regulator the Financial Services Authority and the US Commodity Futures Trading Commission have fined Barclays Bank £59.5 million ($92.6 million) and $200 million, respectively, for attempting to manipulate LIBOR and EURIBOR rates -- which are used to price over-the-counter interest-rate derivatives contracts, as well as other assets such as mortgages and loans -- to its own advantage.
According to the FSA, over a period of several years, Barclays' interest-rate derivatives traders influenced those at the bank responsible for submitting its rates to the British Bankers Association and the European Banking Federation -- which publish LIBOR and EURIBOR, respectively, based on an average of contributed rates from banks -- to submit rates that would benefit the bank's trading positions by increasing profits or minimizing risk.
According to the CFTC, Barclays' senior management sought to protect the bank's reputation during the financial crisis by instructing staff to make artificially low submissions, which "occurred regularly and was pervasive," and Barclays also asked other banks to assist it in manipulating the benchmarks -- and aided other banks' attempts.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models.
IEX Cloud closure forces fintech clients to seek data alternatives
IEX says it is ditching its unprofitable data arm to focus on its core exchange business, but other vendors believe they can turn a profit from its former client base of fintechs, retail investors and some institutions.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.
Cboe pushes rule change to make way for proprietary Opra alternatives
As US options data has grown in volume and cost, Cboe says changing the public feed's governing document would make way for more competition from private alternatives, including its Cboe One Options Feed, launched in 2023.
Waters Wrap: What’s going on ‘Here’? Examining interop’s next move
OpenFin is now known as Here. Anthony explains what the rebrand might signal for the application interoperability space.
This Week: MSCI, Tradeweb, FactSet, LTX, MarketAxess, TS Imagine, and more
A summary of the latest financial technology news.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher