ICAP Challenging European Commission Decision to Fine Them £11.3 Million

Following a multi-month investigation into ICAP for fixing yen-Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term interest rates, the European Commission (EC) has announced today that it is fining the interdealer and post trade services firm £11.3 million. The issuance of a fine adds to previous settlements ICAP Europe finalized with the FCA and CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term in September 2013.

Following the EC’s decision, ICAP has announced that it will challenge the fine, stating publicly that “ICAP does not accept the EC's decision, which it believes is wrong both in fact and in law.” According to the firm, they believe that the yen-Libor matter is a regulatory one which has already been settled outside of the EC’s jurisdiction as it isn't a “competition issue.”

ICAP’s response follows earlier announcements that the firm made in June 2014, claiming that they didn’t break any EU laws. At the time, ICAP made it public that they had received a Statement of Objections from the EC, adding that they didn't believe that they broke any laws and that they “will defend [themselves] against these allegations vigorously.”

The investigations stem from allegations that ICAP had acted as a facilitator to banks for their role in fixing yen-Libor rates, and thus would fall under breaches of EU competition law.