Hong Kong probes UBS over interbank rate rigging claims

Hong Kong's de facto central bank said Thursday it would probe UBS over possible rigging of the city's interbank offered rate, a day after the Swiss giant agreed to pay a huge fine over the Libor scandal.

The Hong Kong Monetary Authority said it has received information from overseas regulators about “possible misconduct” by UBS involving submissions for the city's interbank rate, known as Hibor, and other reference rates in Asia.

“The HKMA has commenced an investigation with a view to ascertaining any misconduct committed by the bank in relation to Hibor submissions,” it said.

The HKMA said it would also assess whether the potential misconduct had any material impact on the Hibor rate, which is considered a key benchmark interest rate for economies in the region.

It added it would work with overseas regulatory authorities to gather information and “consider further actions that need to be taken” pending the findings of the investigation.

In an emailed statement to AFP, a Hong Kong-based spokesman for UBS said: “We continue to work closely with various regulatory authorities to resolve issues relating to the setting of certain global benchmark interest rates.

AFP