ANZ Settles with ASIC over BBSW Benchmark Rigging

The Australian Securities and 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 Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) announced today that it has reached an initial agreement with Australia and New Zealand Banking Group (ANZ) to settle court actions relating to the nation’s interbank BBSW market.

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Sources suggest that the last-minute deal with ASIC to settle the long-running bank bill swap rate case will cost ANZ more than $50 million. The Australian regulator asked the court to postpone the trial for 48 hours to seek approval for the settlement.

ANZ became the first bank to settle claims that suspicious traders manipulated rates to make more money. The deal was announced while a federal court case was running against three of Australia's top banks, which began in Melbourne and included NAB and Westpac.

The charges from ASIC are in connection with ANZ, which over a two-year period artificially moved the price of the bank bill swap (BBSW) reference rate, which is the primary interest rate benchmark used in Australia.

ASIC's counsel John Karkar QC said: "An in-principle agreement has been reached by the commission and the the ANZ Bank to settle the claims against that bank. In the circumstances we request your honour that all matters be stood down for 48 hours to enable the ANZ documentation to be completed."

ASIC alleges that the three lenders had numerous products that were priced from the value of the BBSW reference rate, and that they had traded in the underlying bank bill market with the intention of moving the BBSW price higher or lower. The benchmark is critical for the financial markets as it is used to set interest rates on trillions of dollars worth of bonds, loans and hybrid securities. It also plays a role in determining the rates offered by banks on mortgages and corporate and personal loans.

Administration of the BBSW was handed over to ASIC in a bid to make the benchmark less vulnerable to manipulation by enabling the BBSW to be calculated from a wider set of market transactions.