Icap, the world’s largest interdealer broker, has vowed to appeal a €15m (£11m) fine imposed by the European Commission for colluding in the Libor-fixing scandal – a decision it called “wrong both in fact and law”.
The commission found that Icap assisted banks such as UBS and the Royal Bank of Scotland in cartel activities, with its brokers serving as a communication channel between traders and using their contacts to help influence the yen-denominated branch of Libor.
But Icap, which has already been fined $55m by UK and US regulators over manipulation of the benchmark yen interest rates, said it will launch an appeal against the decision in the European Courts.
“This is a regulatory matter that has already been settled,” the company said. “It is not a competition issue, and the EC has presented no evidence that Icap facilitated a competition law violation.”
The City-based company sees this case as a matter of principle and is expected to fight the fine no matter the cost and duration of the process. Icap’s initial appeal will be made to the European Union’s General Court, which could sit on the matter for several years before reaching a conclusion.Reuse content