The Australian Securities and Investments Commission (ASIC) is taking legal action in the Federal Court in Melbourne against the Australia and New Zealand Banking Group (ANZ) for market manipulation in relation to its involvement in setting the bank bill swap reference rate (BBSW) between March 2010 and May 2012.
ASIC has accused ANZ of trading in a manner that aimed to create an artificial price for bank bills on 44 separate days between 9 March, 2010 and 25 May, 2012.
The regulated alleged that during this period, ANZ had various products which were priced or valued off BBSW and that it traded in the bank bill market with intentions of moving the BBSW higher or lower.
“ASIC alleges that ANZ was seeking to maximise its profit or minimise its loss to the detriment of those holding opposite positions to ANZ’s,” ASIC said.
ASIC has asked the court to declare that ANZ contravened various sections of the Australian Securities and Investments Commission Act 2001, the Corporations Act 2001, and one section of the Corporations Act.
ASIC also sought monetary penalties against ANZ and a court order requiring ANZ to implement a compliance program.
