(Adds HSBC comment, background on rate investigations)
June 18 Hong Kong's de facto central bank said
on Tuesday that its investigation into possible benchmark rate
manipulation has been extended to include HSBC and a
number of other banks.
The Hong Kong Monetary Authority (HKMA) announced in
December that it was investigating UBS about possible
misconduct relating to its submissions for the Hong Kong
Interbank Offered Rate (Hibor).
"Apart from UBS, the HKMA have since December 2012 followed
up with a number of banks including HSBC (both local and
international banks) to ascertain whether there have been any
inappropriate market conducts in their benchmark rate
submissions," HKMA said in a statement, adding that the
investigation was ongoing.
The move is the latest announcement in a series of global
investigations going on into benchmark rates following the
discovery that some had been rigged, most notably Libor, the
London interbank Offered Rate.
HSBC said it can not comment on specific regulatory
matters. In its annual report released in March, the bank noted
that it was subject to a number of regulatory proceedings on
benchmark rate submissions in the UK, United States, Canada, the
European Union, Switzerland and Asia.
Last week the Monetary Authority of Singapore (MAS)
announced that traders from 20 banks, including HSBC, had tried
to inappropriately influence benchmark rates in the Southeast
"As home regulator of HSBC in Hong Kong, the HKMA has asked
HSBC to promptly implement remedial measures and actions as
required by the MAS," HKMA said.
The regulator added that so far in its investigation it has
reviewed millions of communication records and it hopes to
conclude it as soon as is practicable.
(Reporting by Rachel Armstrong in Singapore and Lawrence White
in Hong Kong; Editing by Jeremy Laurence and Matt Driskill)