FCA widens rigging probe to other benchmark rates

Regulators are investigating allegations that several London-based benchmarks used to price financial products could have been rigged, according to Martin Wheatley, the chief executive of Financial Conduct Authority.

Giving evidence to the Treasury Select Committee, Mr Wheatley revealed the City watchdog was looking at claims other major benchmark rates could have been rigged.

Mr Wheatley declined to give MPs details of the investigations, saying it could raise fears that certain market participants were “guilty until proven innocent”.

“There are a number of benchmarks that operate in London that we’re investigating because of concerns that have been raised with us,” he said.

The FCA is currently looking at claims that global foreign exchange benchmarks used to set the value of trillions of pounds of investments have been manipulated by banks.

Mr Wheatley admitted that the allegations meant “people won’t trust” foreign exchange rates and that the rigging could be “every bit as bad as they have been with Libor”.

The inquiry is at an early stage and Mr Wheatley said it was unlikely the foreign exchange investigation would be completed by the end of this year, but added he was hopeful it could be concluded next year.

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