White previously worked at Royal Bank of Scotland as a Japanese Yen (JPY) and Swiss Franc (CHF) Libor submitter and had an obligation to report these figures accurately to the British Bankers’ Association (BBA).
Over a three-year period to November 2010, White received 68 documented communications from RBS JPY and CHF derivatives traders requesting submissions that would benefit their trading positions.
The FCA said White was ‘reckless in not taking into account the consequences that in benefitting either the trading positions of RBS’ JPY and CHF derivatives traders, or his own JPY and CHF money market positions, or those of external parties, his Libor submissions would be improper.’
From 2007 to 2008, a Swiss Franc trader colleague also verbally requested changes to the Libor submissions on a weekly basis, which White took into account amongst other requests.
White also took requests from external traders, with an example on 22 June 2010 showing a Bloomberg communication with a Japanese Yen derivatives broker, which the FCA exampled [sic]:
External Broker: “u got a bit less emotion in the 3’s fix [JPY] today?”
White: “unchanged should be the call, u want higher?”
External Broker: “yah, if not a msve prob”
White: “will c what we can do, maybe up a pip”
External Broker: “nice, much appreciated.”
The FCA has found that Mr White is not a fit and proper person because he lacks integrity by virtue of his conduct.
Mark Steward, director of enforcement and market oversight at the FCA, said: “ This ban should reinforce the message that working in financial markets entails obligations and responsibilities and that serious failures will result in substantial penalties including fines and prohibitions.”
The FCA issued White with a warning notice on 18 June 2014, but proceedings were stayed due to the ongoing criminal investigation of the Serious Fraud Office into others who also previously worked at RBS.
This is the FCA’s fourth public action against a trader for manipulating Libor submissions. The regulator has levied seven fines totalling £426m on UK firms for misconduct relating to Libor.
See White’s final notice on the FCA website.
