FCA hands former RBS derivatives trader £250k fine

Neil Danziger has also been banned from the industry after manipulating Japanese Yen Libor submissions at RBS.

A former interest rates derivatives trader at Royal Bank of Scotland (RBS) has been fined £250,000 and banned from the industry for rigging Libor submissions. 

The Financial Conduct Authority (FCA) found Neil Danziger made requests to RBS’s primary Libor submitters with intentions of taking trading positions to benefit himself and other RBS derivatives traders between 14 February 2007 and 22 November 2010.

He also took trading positions into account when he, on occasion, acted as a Libor reference submitter, and manipulated Japanese Yen Libor submissions of other banks with the help of a broker’s assistance, according to the regulator. 

Furthermore, Danziger entered into 28 wash or risk-free trades to make broker payments to two firms ‘in recognition of his personal hospitality’, the FCA added. 

Executive director of enforcement and market oversight at the FCA, Mark Steward, described Danziger’s actions as reckless and damaging to the financial community. 

“Market participants cannot turn a blind eye to what the community, through its laws and regulations, expects nor apply their own, lower standards. This substantial fine and ban should reinforce that message,” he added.

Danziger has been fined a total of £250,000 and received a ban prohibiting him from working in any function within a regulated financial institution.