September 9, 2013 / 2:00 PM / 4 years ago

Icap faces $109 mln fine for Libor rigging-Sky

LONDON, Sept 9 (Reuters) - Broker-dealer ICAP is in talks about a settlement over its role in the Libor rate-rigging scandal that would involve paying about 70 million pounds ($109 million) to British and U.S. regulators, Sky News reported.

ICAP was discussing a deal with the Financial Conduct Authority (FCA) to pay about 20 million pounds.

It would also pay about 50 million pounds ($78 million)collectively to the U.S. Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC), Sky said on Monday.

It said an announcement could come within the next 10 days.

The FCA, ICAP and the CFTC declined to comment.

A spokesman for the DOJ said it had an “active, ongoing investigation into possible manipulation of LIBOR and other international interest rate benchmarks” but declined to comment on any specific firms.

ICAP is in advanced talks to settle the investigation but a settlement could still take several weeks, people familiar with the matter said last week.

Such a fine would be far less than that paid by a trio of banks which have settled allegations of Libor manipulation.

British and U.S. regulators have so far fined three banks - UBS, Barclays and Royal Bank of Scotland - a total of $2.6 billion over the rigging of the London Interbank Offered Rate (Libor), which is used to price trillions of dollars worth of products, including derivatives and mortgages.

Icap shares were up 4 percent at 415 pence by 1345 GMT, outperforming a slightly weaker UK share market.

Earlier this year, ICAP said none of its senior management was ever aware of, or involved in, the attempted manipulation of benchmark interest rates.

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