CFTC orders JPMorgan to pay $65 million to settle swap rate manipulation charge
Reuters
Published Jun 18, 2018 04:29PM ET
CFTC orders JPMorgan to pay $65 million to settle swap rate manipulation charge
WASHINGTON (Reuters) - JPMorgan Chase (NYSE:JPM) Bank NA
The derivatives regulator said the bank made false reports and attempted to manipulate the U.S. Dollar International Swaps and Derivatives Association Fix to benefit its derivatives positions.
ISDAfix rates are used to help value the cash settlement of options on interest rate swaps and other products. Pension funds and local governments often rely on products priced off the benchmark rate to help hedge against future interest rate changes.
The benchmark swap rates and spreads that are published daily indicate the prevailing mid-market rate, at a specific time of day, for the fixed leg of a standard fixed-for-floating interest rate swap.
"We're pleased to have this matter behind us," JPMorgan spokeswoman Jessica Francisco said.Other big banks including Goldman Sachs Group Inc (NYSE:GS), Barclays (LON:BARC) PLC and Citigroup Inc (NYSE:C) had to settle similar charges relating to ISDAfix benchmark case with the regulator in 2015 and 2016.
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Written By: Reuters
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