June 27 None of ICAP's senior management
were ever aware of, or involved in, the attempted manipulation
of benchmark interest rates, the British broker said in a
statement on Thursday.
Citing sources familiar with the matter, the Wall Street
Journal said on Wednesday that ICAP executive David Casterton
was included on emails sent in 2007 that documented discussions
between ICAP brokers and officials at UBS.
In those emails, UBS had agreed to make quarterly payments
to ICAP for help in rigging Libor (London Interbank Offered
Rate), the Wall Street Journal said.
"Neither the company nor its senior management was aware of
any corrupt payment from any source at any time. All payments
received from UBS were documented and invoiced," ICAP said in an
emailed statement on Thursday.
"ICAP strongly refutes that Mr Casterton or anybody else in
ICAP senior management were ever aware of, or involved in, any
improper activities in relation to the attempted manipulation of
yen or any other Libor. Any suggestion otherwise is false and
David Casterton is currently head of global broking at ICAP.
He could not immediately be reached for comment.
British and U.S. regulators have so far fined three banks a
total of $2.6 billion over the Libor rigging scandal. Two men
have been charged over the rigging.
Last week, British prosecutors alleged in court that former
UBS and Citi trader Tom Hayes had conspired with employees from
at least 10 financial institutions, including ICAP, to
manipulate interest rates over four years.
In its settlement last year with British and U.S. regulators
over the rate-rigging, UBS admitted that its traders paid bribes
to brokers in return for their help in fixing rates. It did not
identify the brokers.
These brokers accepted "corrupt payments" from UBS and also
engaged in wash" trades - where a bank does two trades that
effectively cancel each other out - to earn more than 170,000
pounds in commission, UK regulators said in the Dec. settlement.
ICAP chief executive Michael Spencer has since said that the
brokerage, after conducting internal investigations into
possible rigging, had found no signs of telltale "wash trades"
used by banks to reward brokers.
Terry Smith, the CEO of rival Tullett Prebon, said
in March that the firm's internal probes had found wash trades,
including interest rate products, but that these were a common
way for brokers and clients to remunerate each other and that
there was no evidence they were linked to Libor