Citibank will pay a total of $425 million to settle CFTC charges that the bank manipulated three currency-valuation benchmarks.
The bank will pay $250 million to settle charges that it skewed its submissions to U.S. Dollar International Swaps and Derivatives Association Fix, a global benchmark for interest-rate derivatives, between 2007 and 2012.
Those changed submissions benefited Citibank’s trading positions at the expense of its derivatives counterparties, the Commodity Futures Trading Commission said in a news release.
Also, the CFTC said Citibank executed trades in targeted interest rate products, including swap spreads and U.S. Treasuries, in a way that influenced the published USD ISDAFIX to benefit Citibank in its derivatives positions.
Separately, Citibank and its affiliates Citibank Japan and Citigroup Global Markets Japan agreed to pay a total of $175 million to settle charges that it manipulated two currency benchmarks, the London Interbank Offered Rate and Euroyen Tokyo Interbank Offered Rate, from 2008 to 2010.
Citibank said in a statement the settlements were “a significant step” in resolving its benchmark rate investigations. It also said that the bank had adopted industry-wide reforms in benchmark rate participation and has invested in its systems, controls and monitoring.