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SINGAPORE: The Royal Bank of Scotland (RBS) has suspended a senior trader for his alleged attempt to manipulate the Singapore dollar swap lending rate, according to reports.
Sources say this is the first time RBS is said to discipline a staff member for allegedly attempting to manipulate a benchmark rate, other than those related to the London interbank offered rate (Libor).
RBS has declined to comment specifically on the case, but reiterated its commitment to cooperate with the authorities on the investigations.
"Our investigations into submissions, communications and procedures relating to the setting of Libor and other interest rates are ongoing," the bank said in a statement. "RBS and its employees continue to cooperate fully with regulators."
The latest case follows the dismissal of Tan Chi Min last November, who was sacked by RBS from his Singapore—based role as head of delta trading for the bank’s Global Banking & Markets division for trying to improperly influence Libor.
In July, the Monetary Authority of Singapore said it has directed banks to review the processes regarding the setting of benchmark interbank borrowing rates in Singapore. This was later extended to include the rates setting for non deliverable forward foreign exchange contracts.
The central bank urged banks to "report immediately any irregularities they uncover, and to take appropriate disciplinary action against staff involved in such irregularities."