Tullett Prebon CEO Says No Evidence Employees Helped Rig Libor

Tullett Prebon Plc Chief Executive Officer Terry Smith said the interdealer broker has found no indications that employees were involved in rigging global benchmark interest rates.

“We found no evidence that any of our staff had taken part in manipulation, or in endeavours to manipulate” the London interbank offered rate, Smith said in a telephone interview today, citing the results of the firm’s internal probe. The company hasn’t been told by regulators that it or any of its employees are under investigation, Smith said.

Interdealer brokers, the middlemen who line up buyers and sellers of securities for banks, are emerging as key enablers in the Libor scandal after Royal Bank of Scotland Group Plc, UBS AG and Barclays Plc paid total fines of $2.6 billion for rigging interest rates. The settlements highlighted numerous instances where brokers passed on traders’ requests for certain rates and took payments for doing so.

Employees at ICAP Plc, the world’s biggest interdealer broker, and RP Martin Group Ltd., a smaller British competitor, are being probed over their alleged involvement in rate-rigging, three people with knowledge of the matter said last month.

The Financial Times reported on Feb. 15 that one of London-based Tullett’s brokers agreed to relay requests from a UBS derivatives trader asking employees at other banks to make favourable submissions to Libor.

“We can’t find anything to suggest that we were liable,” Smith said.

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