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ICAP losing grip on setting U.S. swaps rate amid inquiry

U.S. regulators have found evidence that the rate, which is set daily based on data reported from banks, was rigged at the expense of pensions and other institutional investors, Bloomberg News reported last year

By Matthew Leising | Updated on January 27, 2014

Jan. 27 (Bloomberg) — ICAP Plc is about to be stripped of its function setting a U.S. benchmark for interest-rate swaps as regulators look into whether banks manipulated the measure.

The International Swaps & Derivatives Association Inc. picked Thomson Reuters Corp. to handle collecting data from banks that are used to calculate the dollar-denominated version of ISDAfix, a measure used in the $426 trillion swaps market, according to ISDA spokesman Steven Kennedy. He said the shift away from ICAP, a London-based broker, will begin this week. Reuters already handles versions of the rate outside the U.S.

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