BNP BNP Paribas

By Robert Barba 

BNP Paribas SA agreed to pay a $90 million fine to settle charges that its traders tried to manipulate a global interest rate benchmark, making it the seventh bank punished by regulators for the financial crisis-era scheme.

The Commodity Futures Trading Commission said that between May 2007 and August 2012, multiple traders and supervisors of the bank's securities unit attempted to manipulate the U.S. Dollar International Swaps and Derivatives Association Fix, a benchmark referenced in a range of interest-rate products. It did so, the CFTC said, to benefit the bank's derivatives positions in instruments such as cash-settled options on interest rate swaps and certain exotic structured products.

The regulator said BNP Paribas traders attempted to manipulate the benchmark by bidding, offering and executing transactions at 11 a.m. Eastern Time, when the reference rates are captured and sent to submitting banks.

A spokeswoman for BNP Paribas said in an email that the firm has accepted the fine and is pleased to resolve the investigation. She added that the bank has since strengthened its compliance and controls.

BNP Paribas follows banks like JPMorgan Chase, Barclays PLC, Citigroup Inc., Goldman Sachs Group Inc., Deutsche Bank Securities Inc., and Royal Bank of Scotland Group PLC in settling similar benchmark manipulation cases .

"This matter, the seventh enforcement action relating to the USD ISDAFIX benchmark, further demonstrates that the CFTC will continue to be vigilant and aggressive in protecting the integrity of our markets," said James McDonald, CFTC's enforcement director, in prepared remarks.

Write to Robert Barba at Robert.Barba@wsj.com

(END) Dow Jones Newswires

August 29, 2018 16:56 ET (20:56 GMT)

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