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JPMorgan, UBS withdraw from Australian benchmark rate fixing committee

JPMorgan Chase & Co and UBS have decided to withdraw their participation from Australia's benchmark interbank lending rates panel, due to legal actions taken as part of the London Interbank Offered rate (Libor) scandal.

Following the exit of JP Morgan and UBS, members in the committee that determine Australia’s bank bill swap (BBSW) rate under the supervision of Australian Financial Markets Association (AFMA) will decrease from 14 to 12.

The Swiss lender exited the BBSW committee in February this year after a report published by the US Commodities Futures Trading Commission (CFTC) alleged its involvement in manipulating Libor.

UBS was fined $1.5bn by global regulators over accusations that the bank fixed the Libor rates.

Global regulators imposed multimillion penalties against the banks including Barclays, UBS, Royal Bank of Scotland for their roles in rate rigging scandal.

Dutch lender Rabobank and Citi group have pulled out of the panel for Euribor rate fixing panel amid increased scrutiny.

In a similar move in April last year, RBS exited from the BBSW panel as well as the Tokyo and Hong Kong interbank offered rates committees.