18 August 2019

Hong Kong probe finds UBS tried to rig rates, WSJ says

Hong Kong’s de facto central bank has found evidence that UBS A.G. tried to rig the local benchmark interest rate after more than a year of investigation of nine banks concluded that the rate was not successfully manipulated. The investigation into the Hong Kong interbank offered rate (HIBOR) by the Hong Kong Monetary Authority (HKMA) started in 2012 and reviewed millions of records after the authority received information from overseas regulators about alleged misconduct by UBS. It widened the scope to HSBC Holdings, Bank of Tokyo Mitsubishi, Citibank, Crédit Agricole, Deutsche Bank, Royal Bank of Scotland and Société Générale S.A. The HKMA found evidence of misconduct in the submission of HIBOR rates by only one bank and no evidence of collusion between these banks to rig the HIBOR fixing, it said in a press statement. The regulator ordered UBS to discipline the staff involved for not reporting the misconduct and work out new oversight routine within six months, the report said.

– Contact HKEJ at [email protected]


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