The
European Commission announced on 4 February that it fined the UK broker ICAP
EUR 14.9 million for its role in allegedly facilitating cartel activity that
manipulated the yen Libor interest rate.
The Commission maintains that ICAP served as a conduit between a Citigroup trader and an RBS trader to enable the dissemination of information. The practices are alleged to have facilitated cartels in the yen interest rate derivatives market between 2007 and 2010.
The penalties are not unexpected and had been the subject of speculation by the Financial Times in the run up to the Commission's announcement. However, the penalty was about EUR 5 million higher than had been expected. According to the Commission, the penalty reflects the nature and seriousness of ICAP's involvement as well as an uplift for deterrence.
The penalty follows over a year since the Commission fined UBS, RBS, Deutsche Bank, Citigroup, JPMorgan and the broker RP Martin a total of EUR 669 million for their involvement in six yen interest rate derivatives cartels. The banks and other broker settled the case with the Commission but ICAP did not.
ICAP continues to contest the case and has stated that it will appeal the Commission's decision. It says that the case involves regulatory issues which do not concern competition law. It also lodged a complaint relating to the Commission's handling of the case with the EU ombudsman in October last year. This complaint will now be superseded by the proceedings before the General Court assuming that ICAP pursues its appeal.
Commission press release IP/15/4104
The Commission maintains that ICAP served as a conduit between a Citigroup trader and an RBS trader to enable the dissemination of information. The practices are alleged to have facilitated cartels in the yen interest rate derivatives market between 2007 and 2010.
The penalties are not unexpected and had been the subject of speculation by the Financial Times in the run up to the Commission's announcement. However, the penalty was about EUR 5 million higher than had been expected. According to the Commission, the penalty reflects the nature and seriousness of ICAP's involvement as well as an uplift for deterrence.
The penalty follows over a year since the Commission fined UBS, RBS, Deutsche Bank, Citigroup, JPMorgan and the broker RP Martin a total of EUR 669 million for their involvement in six yen interest rate derivatives cartels. The banks and other broker settled the case with the Commission but ICAP did not.
ICAP continues to contest the case and has stated that it will appeal the Commission's decision. It says that the case involves regulatory issues which do not concern competition law. It also lodged a complaint relating to the Commission's handling of the case with the EU ombudsman in October last year. This complaint will now be superseded by the proceedings before the General Court assuming that ICAP pursues its appeal.
Commission press release IP/15/4104
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