ICE Swap Rate – ISDAfix

The Intercontinental Exchange (ICE) Swap Rate, formerly known as ISDAfix, is the worldwide common reference rate value for fixed interest rate swap rates. ICE is the parent company of the New York Stock Exchange and various other exchanges and markets around the world. ICE’s futures exchanges and clearinghouses provide risk management and capital efficiency for global commodity and financial markets.

The ICE Swap Rate represents the average mid-market swap rate for three major currencies: Euro (EUR), British pound (GBP) and U.S. dollar (USD), at selected maturities on a daily basis. The rate is used to value and settle derivatives contracts and as a reference rate for floating rate bonds.

The Commodity Futures Trading Commission (CFTC) charged one of the world’s largest banking and financial service institutions with making false reports and attempting to manipulate the U.S. Dollar International Swaps and Derivatives Association Fix. The CFTC found that between 2007 and 2012, company employees attempted to manipulate the reference rate by “bidding, offering, and executing transactions in targeted interest rate products” during the time of day when the reference rate was fixed. The company agreed to pay $65 million to settle the fraud claims. The settlement, which occurred in July 2018, was just one of a series of seven CFTC enforcement actions involving the U.S. dollar ISDAfix. In total, the CFTC has imposed nearly $6 billion in penalties against various banks and brokers involved in rigging important financial benchmarks like ISDAfix.

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