A former short-term interest rate derivatives trader agreed to a fine and permanent industry ban for his role in a scheme to manipulate the London Interbank Offered Rate ("LIBOR"). Guillaume Adolph, previously a trader at Deutsche Bank AG ("Deutsche"), was accused by the UK Financial Conduct Authority ("FCA") of influencing Deutsche's submissions for Japanese yen ("JPY") and Swiss franc ("CHF") LIBOR.
Mr. Adolph acted as the primary JPY LIBOR submitter for Deutsche from 2008 through 2009. The FCA found that Mr. Adolph improperly took into account his own trading positions when making submissions, with the intention of manipulating the final rate to maximize his profits. In addition, the FCA determined that Mr. Adolph entered into an illicit agreement with an external trader to make JPY LIBOR submissions that would benefit the external trader's positions. In return, the trader agreed to similarly manipulate JPY LIBOR submissions in the future to benefit Mr. Adolph. In addition to the JPY LIBOR manipulation efforts, Mr. Adolph was found to have communicated with Deutsche's CHF LIBOR submitters in order to influence their submissions.
Mr. Adolph agreed to settle with FCA and will pay a penalty of £180,000 and be disallowed from engaging in any regulated activity, effective immediately. Deutsche previously paid nearly £227 million for related misconduct.
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