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CFTC Said Probing ICAP on Swap Price Allegations: Credit Markets

ICAP Plc brokers and as many as 15 Wall Street banks are being probed by the Commodity Futures Trading Commission for possible manipulation of interest-rate swap prices used as a benchmark in the $379 trillion market.

The CFTC has issued subpoenas to about a dozen current and former employees at ICAP’s Jersey City, New Jersey, swaps-brokering group, nicknamed “Treasure Island” because of the size of the commissions it earns, said three people familiar with the investigation. Dealers including Goldman Sachs Group Inc. and Deutsche Bank AG that contribute prices used to set the daily swap rates also have been subpoenaed, two people familiar with the matter said.