Bloomberg News

ICAP Rises on Report Libor Fine May Be Smallest So Far in Probe

September 09, 2013

ICAP Plc (IAP), the world’s largest broker of trades between banks, rose as much as 5.1 percent in London after Sky News said it faces the lowest fine so far in the global probe into the rigging of benchmark interest rates.

The interdealer broker may pay about 70 million pounds ($110 million) to the U.K.’s Financial Conduct Authority and the U.S. Department of Justice and Commodity Futures Trading Commission, Sky reported, without saying where it got the information. The figure may change because a final agreement is yet to be reached, Sky said.

At 70 million pounds, the settlement would be within the 50 million-pound to 100 million-pound range Morgan Stanley (MS:US) analyst Anil Sharma published on Sept. 4. It’s also less than the 290 million pounds Barclays Plc (BARC) paid last year when it became the first company to be fined for rigging the London interbank offered rate, the benchmark for more than $300 trillion of securities from mortgages to student loans.

The stock climbed as much as 20.4 pence and was up 18.1 pence at 417.60 pence as of 3:25 p.m. in London trading. Brigitte Trafford, a spokeswoman for London-based ICAP, declined to comment on the report.

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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