ASIC accepts enforceable undertaking from BNP Paribas

The Australian Securities and Investments Commission (ASIC) announced it has accepted an enforceable undertaking (EU) from BNP Paribas in relation to potential misconduct involving the Australian Bank Bill Swap Rate (BBSW).

BNP will also make a voluntary contribution of $1 million to fund independent financial literacy projects in Australia.

In November 2012, BNP reported to ASIC that it had found conduct between 2007 and 2010 that was indicative of seeking to influence its BBSW submissions, based on how the submissions may benefit BNP's derivatives positions. BNP remained a member of the BBSW submissions panel until a new methodology for calculating the BBSW was implemented on 27 September 2013.

The EU requires BNP to ensure its participation in relation to the setting of Australian interest rate benchmarks upholds the integrity and reliability of those benchmarks.

At ASIC's request, BNP engaged an independent expert to conduct a review of BBSW submissions. The expert found that any market impact was not significant.

ASIC's inquiries in relation to the BBSW submission process are ongoing.

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