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UK Money News
CORRECTED-ICAP scraps rate fixing as banks reduce participation
Fri, 3rd Aug 2012 16:12
NEW YORK, Aug 3 (Reuters) - Interdealer broker ICAP said on Friday that it will discontinue a
ICAP launched its survey, the New York Funding Rate, or NYFR, in 2008 to address shortcomings of Libor, which has come under increasing scrutiny since Barclays in June paid fines to U.S. and British regulators to settle charges that it manipulated the rate.
Doubts about Libor grew in 2008 after The Wall Street Journal reported that banks contributing dollar quotes to daily fixings had been under-quoting the true cost of funds to avoid being labeled as desperate for cash.
ICAP has been unable to publish the rate in recent days because it did not receive the minimum number of sumbmissions required to publish the rate, the broker said in an email on Friday.
'Unfortunately, it does not appear to ICAP that this is going to change in the near term,' ICAP said. 'As a result, effective today, ICAP has decided that it will no longer be polling its participants and/or posting a NYFR Fixing.'
(Reporting by Karen Brettell and Richard Leong; Editing by Steve Orlofsky) Keywords: ICAP NYFR/RATES
(karen.brettell@thomsonreuters.com)(646 223 6274)(Reuters Messaging: karen.brettell.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
rate survey it publishes that had been meant to act as an alternative to the London interbank offered rate (Libor), due to a decline in banks' participation.
ICAP launched its survey, the New York Funding Rate, or NYFR, in 2008 to address shortcomings of Libor, which has come under increasing scrutiny since Barclays in June paid fines to U.S. and British regulators to settle charges that it manipulated the rate.
Doubts about Libor grew in 2008 after The Wall Street Journal reported that banks contributing dollar quotes to daily fixings had been under-quoting the true cost of funds to avoid being labeled as desperate for cash.
ICAP has been unable to publish the rate in recent days because it did not receive the minimum number of sumbmissions required to publish the rate, the broker said in an email on Friday.
'Unfortunately, it does not appear to ICAP that this is going to change in the near term,' ICAP said. 'As a result, effective today, ICAP has decided that it will no longer be polling its participants and/or posting a NYFR Fixing.'
(Reporting by Karen Brettell and Richard Leong; Editing by Steve Orlofsky) Keywords: ICAP NYFR/RATES
(karen.brettell@thomsonreuters.com)(646 223 6274)(Reuters Messaging: karen.brettell.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
