A US subsidiary of Icap, the UK broker founded and run by Michael Spencer, the Conservative Party treasurer, has agreed to pay $25m to settle allegations by the Securities and Exchange Commission in New York.
The SEC alleged that brokers at Icap, the world’s largest interdealer, used fake trades to encourage trading by customers.
Interdealer brokers match buyers and sellers in over-the-counter markets, such as government bonds and mortgage-backed securities, by posting trade information. Customers often use the level of trading activity to decide whether to place orders.
Oh dear, oh dear, oh dear.
The Tories really aren't that good with cash, are they?