Michael Spencer, CEO at ICAP (Photo: Reuters)
ICAP, one of the world's largest interdealer brokers, declared it has not found "wash trades," used by banks to reward brokers for their help in manipulate key interbank lending rates, in a bid to distance itself from the Libor rigging scandal.
Former Conservative party treasurer and ICAP CEO Michael Spencer told investors: "We haven't found any wash trades that we've been involved in."
Wash trades is the name given to the practice of banks creating fake trades to pay brokers through commissions.
Spencer added that the interdealer broker was already conducting an internal probe into whether any attempts to manipulate key interbank lending rates had occurred. The group was sharing relevant information with the UK's Financial Services Authority (FSA), he said.
ICAP's declaration follows growing speculation over who colluded with the Royal Bank of Scotland when the 83 percent-taxpayer-owned bank paid US and UK authorities a £390m ($612m/€451m) fine and pleaded guilty to one criminal charge involving its Japanese subsidiary.