Barclays has agreed to pay the CFTC $115 million to resolve its investigation into manipulation of the benchmark interest rate known as the ISDAfix. The misconduct occurred between 2007 and 2012, when U.S. traders attempted to manipulate the rate to favor their positions.
The announcement came in conjunction with the DOJ’s multi-billion dollar settlement of its criminal investigation into currency manipulation by banks.
Barclays was one of the panel banks submitting information to the U.S. ISDAfix rate. The bank tried to move the rate during the time period when it is calculated, according to the CFTC.
The ISDAfix is used for calculations of the costs on real estate loans and for payouts on pension funds. The process of determining the rate has since been changed. However, a group of other financial institutions that were involved in the process in the past are also under investigation by government authorities.
This is the first settlement that we know of related to the ISDAfix, which we have discussed before on our blog. We haven’t seen any reports yet that there is an ISDAfix whistleblower.
Our CFTC whistleblower attorneys can assist you with answers to questions about this information as well as assistance reporting violations of the Commodity Exchange Act to the U.S. Government. To speak to an attorney, fill out our contact form or call 1-800-590-4116.