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US: Suit accuses nine banks of rigging Canadian rate benchmark

 |  January 15, 2018

Nine large banks, including six from Canada, have been accused in a lawsuit of conspiring to rig a Canadian rate benchmark to improve profits from derivatives trading.

The complaint, filed by a Colorado pension fund in US District Court in Manhattan late on Friday, accused Royal Bank of Canada,, Toronto-Dominion Bank, Bank of Nova Scotia and the other banks of suppressing the Canadian Dealer Offered Rate (CDOR), from August 9, 2007, to June 30, 2014.

According to the Fire & Police Pension Association of Colorado, the banks hoped to reduce interest they would owe investors on CDOR-based derivatives transactions in the United States, including swaps and Canadian dollar futures contracts, and generate potentially billions of dollars of improper profit.

The fund is seeking unspecified damages for investors in the proposed class action for alleged violations of US antitrust, commodity and anti-racketeering laws over the nearly seven-year period.

Full Content: The Financial Times

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