FCA chief confirms formal probe into interest rate derivatives

The Financial Conduct Authority (FCA) has confirmed for the first time it has joined an international probe into the alleged rigging of the multi-trillion dollar interest rate derivatives market.

Martin Wheatley, chief executive of the FCA, said the regulator was investigating the potential manipulation of the ISDAfix that is used to price much of the $379trn (£242trn) interest rate swap market, the Telegraph reports. "We have asked for records, the CFTC [US Commodity and Futures Trading Commission] have asked for records, and I think that one or two other others have as well," he said. Giving evidence to the Treasury Select Committee, Wheatley said the probe had a "formal status", but was "at an early stage", adding it was "too early to say" how a big a scandal it could be. ...