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ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, today announces that one of its Global Broking division's subsidiaries, ICAP Europe Limited (IEL), has reached settlement agreements with the Financial Conduct Authority (FCA) and the U.S. Commodity Futures Trading Commission (CFTC) relating to the involvement of certain brokers in the attempted manipulation of YEN Libor by bank traders between October 2006 and January 2011.
Under the terms of the settlements, IEL has agreed to pay penalties of £14 million to the FCA and $65 million to the CFTC, totalling £55 million ($87 million). The detailed findings of the investigations are set out in the final notices published on the websites of the FCA and CFTC.
The Company has also been working closely and co-operating fully with an ongoing investigation by the U.S. Department of Justice (DOJ). The DOJ has not taken action against IEL nor any other ICAP company to date. Based on ICAP's present assessment of this matter, no provision has currently been made.
Michael Spencer, Group Chief Executive Officer, said: “We deeply regret and strongly condemn the inexcusable actions of the brokers who sought to assist certain bank traders in their efforts to manipulate YEN Libor. Their conduct contravenes all that ICAP stands for. As soon as their actions came to light, we provided assistance to regulators in the U.S. and U.K. to understand what had happened. None of the three individuals at the centre of the activity remains with the firm. Others are either no longer with the company or are being disciplined.
"There were no findings that any senior management were involved in this matter nor that the firm engaged in deliberate misconduct. Both the CFTC and the FCA have acknowledged our co-operation and the FCA notes the significant improvements the entire Group has made to its control infrastructure since 2010.
"ICAP companies play a vital role in global markets. It is deeply regrettable that the actions of these individuals have compromised the efforts of our 5,000 employees around the world, who work hard to earn the trust and confidence of our customers and other stakeholders. We have learned from this, we will further improve our risk and compliance systems and we will continue to provide our clients with the highly professional service that they expect across many markets and geographies."
