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Australian markets regulator raps RBS for influencing rates

July 22, 2014

SWATI PANDEY



AUSTRALIA'S markets regulator yesterday said it had censured the Royal Bank of Scotland after an investigation found that RBS traders had sought to influence the setting of the country''s benchmark inter-bank interest rate.


An internal RBS investigation found evidence that derivatives traders discussed preferred settings for the Bank Bill Swap Reference Rate (BBSW), the Australian Securities and Investment Commission (ASIC) said.


Submitters openly acknowledged preferences and, at times, solicited preferences," the censure document said, adding a chat-room "BBSW rate set" was used for communications during October 2009 and November 2010.


RBS voluntarily reported to the watchdog and has not admitted to any wrongdoing.


Reuters


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Source: City A.M. (UK)


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