JPMorgan and Deutsche Bank to Settle Libor Lawsuit for $148m

JPMorgan and Deutsche Bank have agreed to settle Libor charges brought forward in two investor lawsuits. The banks will pay a total of $148 million under the terms of the agreement. The deal was approved by a New York federal judge.

JPMorgan will pay $71 million while Germany’s largest lender, Deutsche Bank, will add $78 million. The news comes only a couple of months after a March ruling that some of the investors didn’t have standing to sue.

The case brought forward by one of the investors was dismissed, but only after a settlement agreement was reached. An additional court hearing set to grant final approval is scheduled for November.

The cases brought forward by Sonterra in 2015 and Laydon in 2012 are focusing on yen-denominated rates in Tokyo. Other parties in the lawsuits that have already settled are Citibank and RP Martin Holdings for $23 million and HSBC for $35 million.

ICAP, Tullett Prebon and Lloyds were dismissed from the Laydon case in March 2017. Charges against Barclays, Royal Bank of Scotland, Bank of America Corp. and UBS have been dropped from the Sonterra case.

The manipulation of interest rate benchmarks in recent years has been at the center of numerous litigation processes against major banks. Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market charges have escalated during the past couple of years, ensuring several more years of litigation charges against prime brokers.

Recently, Alpari US filed charges against several prime brokers that had been executing orders for the firm. The banks allegedly tuned their trading platforms to reject orders under certain circumstances. The practice known as Last Look Last Look Last look is defined as the process where liquidity providers (LP) are rendered the chance to reject trades within a specific period. Generally, this practice by brokers is used to mitigate risk while rendering more favorable terms to the LP. This is due to significant risk that can arise from poorly concocted price quotes that can be used as an advantage by latency arbitragers. Not all last look settings are the same.Last look settings tend to vary by client, trading platform, a client’s connec Last look is defined as the process where liquidity providers (LP) are rendered the chance to reject trades within a specific period. Generally, this practice by brokers is used to mitigate risk while rendering more favorable terms to the LP. This is due to significant risk that can arise from poorly concocted price quotes that can be used as an advantage by latency arbitragers. Not all last look settings are the same.Last look settings tend to vary by client, trading platform, a client’s connec Read this Term is said to have put the brokerage at a disadvantage.