Terry Smith warned ISDA of rate manipulation in 2010 - reports

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Tullett Prebon's chief executive Terry Smith wrote a letter to the International Swaps and Derivatives Association (ISDA) back in 2010 to question the rate setting process, but was ignored, the Telegraph reports.

According to a letter seen by the newspaper, Smith demanded an overhaul of the rate setting practices for the $164trn interest swap industry, saying it needed a system that "more clearly reflects price and which is less capable of manipulation". The then-chief executive of ISDA Conrad Volstad, who remains a vice president on the committee, rejected the request at the time and said the system was functioning well. Now, three years down the line, ISDA has appointment management consultant Oliver Wyman to determine if brokers have been manipulating the price of ISDAfix, after regulators ...

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