(MENAFN- AFP) British broker ICAP said Tuesday that it was cooperating with a US probe into allegations of manipulation of a key benchmark for interest rate swaps, confirming media reports, but added that its policies prohibited such behaviour.The Financial Times, citing people familiar with the matter, reported that the Commodity Futures Trading Commission (CFTC) was investigating the key benchmark, known as ISDAFIX, which is managed by ICAP using submissions from 16 major banks.The FT added that the CFTC had issued subpoenas to market participants including ICAP and "several" global banks, as part of an international probe into rigging of various rates including the Libor interbank interest rate."ICAP plc ... notes recent media speculation on the CFTC's inquiry in to the IDSAFIX process. ICAP does not make submissions to ISDAFIX," ICAP said in a statement."ICAP is involved in the administration of part of the ISDAFIX process, and is cooperating with the CFTC's wider inquiry into this area."ICAP maintains policies that prohibit any of the behaviour that has been alleged in the media."Interest rate swaps allow companies and investors to hedge against sudden movements in the cost of loans."ICAP had no knowledge of the allegations prior to the media speculation, and is investigating them," the brokerage added."Until those investigations are complete we will not make any further comment."
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