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FCA fines and bans RBS derivatives trader

RBS-Building-2012-700x450.jpgThe FCA has fined an RBS derivatives trader £250,000 for manipulating Libor and banned him from performing any function in relation to any regulated financial activity.

Neil Danziger traded interest rate products referenced to Japanese Yen Libor. He occasionally made Libor submissions to the British Bankers Association when RBS’s primary submitters were not available. 

The FCA says between February 2007 and November 2010 Danziger routinely made requests to RBS’s primary submitters, intending to benefit the trading positions for which he and other derivatives traders were responsible.

He also took trading positions into account when acting as a substitute submitter and on two occasions obtained a broker’s assistance to attempt to manipulate the JPY Libor submissions of other banks.

Additionally, between September 2008 and August 2009 he entered 28 “wash trades” – risk free trades, with the same party, in pairs that cancelled each other out and for which there was no legitimate commercial rationale.

In June 2014, the FCA issued Danziger with a warning notice, but proceedings were stayed due to the ongoing criminal investigation by the Serious Fraud Office into individuals who formerly worked at RBS.

FCA executive director of enforcement and market oversight Mark Steward says: “Proper standards of market conduct reflect the interests of the whole community in the well-being of our financial markets. Mr Danziger’s reckless disregard of these standards has no place in the financial services industry. 

“Market participants cannot turn a blind eye to what the community, through its laws and regulations, expects, nor apply their own, lower standards. This substantial fine and ban should reinforce that message.”

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