Icap hit with €15m fine by EC over Libor-fixing scandal

Broking giant immediately said it would challenge the fine

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The Independent Online

Icap, the broking giant founded and run by Michael Spencer, has been fined €15 milllion (£11.2 million) by the European Commission for colluding in the Libor-fixing scandal and breaking cartel rules.

But Icap immediately said it would challenge the fine on the grounds that it was a regulatory matter not a competition issue. It has already paid £55 million to the Financial Conduct Authority and the US Commodity Futures Trading Commission over yen Libor rigging.

“Today’s decision to fine the broker Icap sends a strong signal that assisting companies in their cartel activities has severe consequences,” said Competition Commissioner Margrethe Vestager. “It marks the successful completion of our antitrust investigation in the yen interest-rate derivatives sector — but not the end to our efforts to fight anticompetitive practices in financial markets.”

Icap said it would challenge the fine in the European Courts.

“Icap does not accept the EC’s decision, which it believes is wrong both in fact and in law,” it said. “This is a regulatory matter that has already been settled. It is not a competition issue, and the EC has presented no evidence that ICAP facilitated a competition law violation.”