The Commodity Futures Trading Commission settled charges on Wednesday against BNP Paribas Securities Corp. BNP, +0.00% for alleged manipulation of the ISDAFIX swap benchmark rate. BNP Paribas will pay $90 million allegedly manipulating the U.S. Dollar International Swaps and Derivatives Association Fix, or USD ISDAFIX, a leading global benchmark referenced in a range of interest rate products. From May 2007 and continuing through at least August 2012, multiple BNP Paribas traders and managers allegedly conspired to influence the firm's own derivatives positions in cash-settled options on interest rate swaps and certain exotic structured products. Certain BNPP traders described such attempts to manipulate the USD ISDAFIX as ways to "play the fixing," "push the screen," and "play[] the screen game." On one occasion, BNPP options and swaps traders likened their illegal efforts to manipulate the USD ISDAFIX to lyrics of popular songs by Montell Jordan and Salt-N-Pepa: "that's a great fixing," "this is how we do it here :-P" and "push it real good." While neither admitting nor denying the allegations, BNP Paribas agreed to make broad improvements to firm-wide business practices and systems and controls.
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