By Luke Jeffs
LONDON, Jan 24 (Reuters) - ICAP said it was beinginvestigated by the British regulator over Libor setting, makingthe world's largest broker the first non-bank to confirm it hasbeen linked with the scandal over fixing the lending rate.
As an inter-dealer broker, ICAP acts as an intermediarybetween the world's largest investment banks, many of which areinvolved in setting the Libor rate.
A British judge on Thursday forced Barclays toidentify top executives alongside traders linked to the Liborprobe, naming ex-CEOs Bob Diamond and John Varley and currentFinance Director Chris Lucas despite requests for anonymity.
ICAP does not contribute to the Libor setting process butregulators have called into question the role that individualbrokers, at ICAP and rival firms, may have played as conduits tomanipulation by traders working at investment banks.
London-based ICAP said in a regulatory filing on Thursday ithad been told by the Financial Services Authority (FSA) that oneof its subsidiaries was under investigation.
ICAP shares were down 3 percent to 317.1 pence a share at1534 GMT.
"The investigation is confidential, accordingly no furthercomment will be made at this stage," the broker said in astatement.
The admission followed a Financial Times newspaper report onThursday that ICAP had been drawn into the FSA's investigation.
More than a dozen banks around the world have beenscrutinised by regulators as part of an investigation into thesuspected rigging of interbank rates, which are used to pricetrillions of dollars of financial instruments.
Barclays was fined $453 million by globalregulators in June last year for manipulating key interest rateswhile UBS was hit with a $1.5 billion bill last monthfor its role in rigging the interest rate.
Royal Bank of Scotland is braced for fines ofbetween 400 million pounds and 500 million pounds ($803 million)for its role in the interest rate rigging scandal, sourcesfamiliar with the matter said earlier this month.
Barclays (BARC)