Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a751418

FCA fines brokerage £630k for Libor fixing

by Robert St George on May 15, 2014 at 13:49

FCA fines brokerage £630k for Libor fixing

The Financial Conduct Authority (FCA) has fined Martin Brokers £630,000 for misconduct relating to the manipulation of the London Interbank Offered Rate (Libor).

Between January 2007 and December 2010, the firm colluded with a trader at UBS to manipulate the Japanese yen Libor rates.

Specifically, Martin Brokers deliberately disseminated incorrect and misleading Libor submissions by sending skewed reports to some Libor panel banks and by creating false orders to influence those panel banks’ views of the market.

The UBS trader also made corrupt payments to reward Martin Brokers for its involvement.

The FCA noted that Martin Brokers’ misconduct was exacerbated by a ‘heavy focus on revenue at the expense of regulatory requirements’.

‘Interdealer brokers are expected to act as trusted intermediaries and are key conduits of market information,’ said Tracey McDermott (pictured), director of enforcement and financial crime at the FCA.

‘The culture at Martins was that profit came first. In this environment, broker misconduct was almost inevitable.’

The brokerage would have been fined £3.6 million but this was reduced because the company showed that it could not pay a penalty of that amount. The fine was further lowered by 30% because Martin Brokers agreed to settle at an early stage of the investigation.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet