UK delays Libor trial of former Barclays traders

By Kirstin Ridley

LONDON, Feb 8 (Reuters) - British prosecutors have delayedthe start of their third Libor trial after new information wasprovided by Barclays, the former employer of the latestgroup of traders charged with conspiracy to manipulate financialbenchmark interest rates.

The Serious Fraud Office (SFO) said on Monday that thetrial, which had been scheduled to begin on Feb. 15, might bedelayed until mid-April after Barclays provided "furthermaterial" that the agency might need to review.

Reuters was unable to determine the nature of the material.British bank Barclays declined to comment and the SFO declinedto provide further detail.

The trial will mark a watershed for the SFO, which hasobtained one conviction but seen six brokers acquitted inhigh-profile prosecutions over the alleged rigging of the Londoninterbank offered rate (Libor), a benchmark for around $450trillion of financial contracts and loans worldwide.

The Barclays trial comes after former UBS andCitigroup trader Tom Hayes was convicted in August ofconspiracy to rig yen-denominated Libor. But in a separatetrial, six former ICAP, RP Martin and Tullett Prebon brokers, charged with being part of that conspiracy,walked free last month.

In its latest Libor case, the SFO has charged formerBarclays employees Peter Johnson, Jonathan Mathew, StylianosContogoulas, Jay Merchant, Alex Pabon and Ryan Reich withconspiracy to manipulate dollar Libor rates.

Hayes, meanwhile, has said he will continue to explore allavenues to try and appeal against his conviction and sentence,which has already been reduced to 11 years from 14 on appeal.

The acquittal of the brokers after one of the SFO's mostcostly prosecutions was a set-back for the agency. Although itbrought the case successfully to trial, critics accused it offocusing on relatively low-level staff.

However, three former ICAP brokers still face U.S. charges.

Daniel Wilkinson, Colin Goodman and New Zealand-basedDarrell Read, who were acquitted of conspiracy to defraud in theUK, were also charged with conspiracy to commit wire fraud andtwo counts of wire fraud by U.S. prosecutors in 2013.

It remains unclear whether the Department of Justice willpursue them following their acquittal in Britain. The DoJ hassaid it is reviewing the matter. (Additional reporting by Sarah Lynch in Washington and SineadCruise in London; Editing by Alexander Smith)