ICAP Losing Grip on Setting U.S. Swaps Rate Amid Inquiry

ICAP Plc is about to be stripped of its function setting a U.S. benchmark for interest-rate swaps as regulators look into whether banks manipulated the measure.

The International Swaps & Derivatives Association Inc. picked Thomson Reuters Corp. to handle collecting data from banks that are used to calculate the dollar-denominated version of ISDAfix, a measure used in the $426 trillion swaps market, according to ISDA spokesman Steven Kennedy. He said the shift away from ICAP, a London-based broker, will begin this week. Reuters already handles versions of the rate outside the U.S.