CFTC Fines Royal Bank of Scotland $85 Million Over Attempted Manipulation of Interest-Rate Benchmark

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 [e-mail]

(END) Dow Jones Newswires

February 03, 2017 11:02 ET (16:02 GMT)

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