A PYMNTS Company

US: ICAP/NEX antitrust suit over interest rate swaps dismissed

By  |  July 31, 2017

A New York federal judge on Monday dismissed ICAP Capital Markets, which was rebranded last year to NEX Group, from a class action litigation alleging that the broker dealer and some US banks conspired to prevent the trading of interest rate swaps on electronic exchanges.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    NEX Group welcomed the decision by the US Southern District of New York, saying that the plaintiffs did not provide evidence to support their claims which were, according to the company, “variously conclusory, insufficient to state a plausible claim, and inadequate to support an inference of participation in any wrongdoing.”

    The case is related to a pension fund’s antitrust lawsuit alleging that ICAP, Tradeweb and several banks blocked market participants from trading the instruments on exchanges to preserve their profits. As a result of this collusion, the suit alleges, two platforms and a dozen megabanks, including Goldman Sachs and Bank of America, were able to limit competition from non-banks in the lucrative US$320 trillion market for interest rate swaps.

    Full Content: News Room

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.