The Swiss Competition Commission (COMCO) has closed its investigations related to the Swiss franc LIBOR benchmark, interest rate derivatives in yen and the Euro, and the bid-ask spread on Swiss franc (CHF) derivatives. While the regulator described the conclusion of these investigations as amicable settlements, it has handed out fines totalling CHF 99 million ($96.5 million). Interest rate derivatives (e.g. forward rate agreements, swaps, futures, options) are financial products used for managing the risk of interest rate fluctuations. They derive their value from the level of a benchmark interest rate, such as the London interbank offered rate (LIBOR) – which is used for various currencies. COMCO’s decisions can be appealed to the Swiss Federal Administrative Court.
Wednesday 21, December 2016 by Robin Amlôt