In the Matter of: 

UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

) 

) 

) 

Cooperatieve Centrale RaiffeisenBoerenleenbank B.A., 

) CFTC Docket No. 14-02 

) 

) 

Respondent. ) 

__________________________ ) 

ORDER INSTITUTING PROCEEDINGS PURSUANT TO 

SECTIONS 6(c) AND 6(d) OF THE COMMODITY EXCHANGE ACT 

MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS 

I. 

The Commodity Futures Trading Commission ("Commission" or "CFTC") has reason to 

believe that Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. ("Rabobank" or 

"Respondent") has violated Sections 6(c), 6(d) and 9(a)(2) ofthe Commodity Exchange Act (the 

"Act" or the "CEA"), 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). Therefore, the Commission deems 

it appropriate and in the public interest that public administrative proceedings be, and hereby are, 

instituted to determine whether Rabobank has engaged in the violations set fmih herein, and to 

determine whether any order shall be issued imposing remedial sanctions. 

II. 

In anticipation of the institution of an administrative proceeding, Rabobank has submitted 

an Offer of Settlement ("Offer"), which the Commission has determined to accept. Without 

admitting or denying the findings or conclusions herein, except to the extent Rabobank admits 

those findings in any related action against Rabobank by, or any agreement with, the Department 

of Justice or any other governmental agency or office, Rabobank herein consents to the entry and 

acknowledges service of this Order Instituting Proceedings Pursuant to Sections 6(c) and 6(d) of 

the Commodity Exchange Act, Making Findings and Imposing Remedial Sanctions ("Order"). 1 

Respondent consents to the entry of this Order and to the use of these findings in this proceeding and 

in any other proceeding brought by the Commission or to which the Commission is a pa1ty; provided, 

however, that Respondent does not consent to the use of the Offer, or the findings or conclusions in this 

Order, as the sole basis for any other proceeding brought by the Commission, other than in a proceeding 

in bankruptcy or to enforce the terms of this Order. Nor does Respondent consent to the use of the Offer 

or this Order, or the findings in this Order consented to in the Offer, by any other party in any other 

proceeding. 
III. 

The Commission finds the following: 

A. Summary 

The London Interbank Offered Rate ("LIBOR") and the Euro Interbank Offered Rate 

("Euribor") are global interest rate benchmarks that are critical to the U.S. and international 

financial markets. Trillions of dollars of financial instruments are priced based on LIB OR and 

Euribor. For nearly six years, from at least mid-2005 through early 2011, Rabobank, through the 

acts of certain traders and managers located throughout the world, engaged in hundreds of 

manipulative acts that undermined the integrity of LIB OR and Euribor. 

LIBOR and Euribor are fixed each day based on rates submitted by a select panel of 

banks. In determining what rates to submit, each bank is to make an honest assessment of the 

costs of borrowing funds in the relevant markets. An honest assessment of the costs of 

borrowing does not include factoring consideration of what rates would be beneficial to the 

derivatives and cash trading positions of the banks. Yet this is what certain Rabobank traders 

and managers did repeatedly across multiple currencies. 

Rabobank derivatives and cash traders frequently asked Rabobank's LIBOR and Euribor 

submitters to submit preferential rates in attempts to manipulate U.S. Dollar and Yen LIBOR, 

Euribor, and on occasion, Sterling LIBOR, to benefit Rabobank traders' cash and derivatives 

trading positions that were tied to these benchmark interest rates. Rabobank's submitters often 

accommodated those requests and made false submissions reflecting the requested rates as 

Rabobank's contributions to the fixings ofLIBOR for several currencies and Euribor. At times, 

Rabobank also aided and abetted other banks' attempts to manipulate Yen LIBOR and Em·ibor. 

Moreover, some of the conduct occurred even after the Commission had commenced its 

investigation ofRabobank's U.S. Dollar LIBOR practices in April2010. After the Yen LIBOR 

submitters were told in late 2010 that it was improper to consider the rate requests ofRabobank's 

traders, a Rabobank trader promptly obtained the assistance of an interdealer broker ("brokers") 

to continue attempting to manipulate Yen LIB OR to benefit his trading positions through early 

2011. At times, Rabobank was successful in manipulating Yen LIB OR. 

Rabobank ignored the obvious inherent conflicts of interest created by assigning traders 

with cash and/or derivatives trading positions tied to U.S. Dollar, Yen and Sterling LIBOR and 

Euribor to serve as Rabobank's LIBOR and Euribor submitters. This fostered an environment 

which facilitated the traders' attempts to manipulate LIBOR and Euribor. Rabobank thus created 

a conflict between the submitters' responsibility to make an honest assessment of the costs of 

borrowing for purposes of determining Rabobank's daily LIBOR and Euribor submissions and 

the submitters' desire to maximize the profitability of their trading positions. Rabobank's 

LIBOR and Euribor submitters often resolved this conflict in favor of their trading positions and 

those of their colleagues to the detriment of the integrity of LIB OR and Euribor. The conflicts of 

interest were heightened because Rabobank also grouped the submitters on the same desks with 

other derivatives traders, which further facilitated the ease of coordinating on the submissions. 

In fact, one dominant derivatives trader simply shouted his requests across the desk to the 

2 
submitters? This profit-driven and manipulative submission process involved traders, managers 

and at least one senior manager3 located in Rabo banlc offices in London, New York, Utrecht 

(Rabobanlc's headquarters), Tokyo, Singapore, and Hong Kong. 4 

The manipulative conduct ofRabobanlc's traders and submitters occurred because 

Rabobank lacked internal controls, procedures and policies specifically relating to its LIBOR and 

Em·ibor submission processes during the period of2005 through early 2011, and failed to 

adequately supervise its trading desks and traders. 

******* 

In accepting Rabobank's Offer, the Commission recognizes Rabobanlc's significant 

cooperation during the Division of Enforcement's investigation of this matter, which helped the 

Division efficiently and effectively undertake its investigation. 

B. Respondent 

Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. ("Rabobank"), is a Dutch 

multinational banking and financial services company headquartered in Utrecht, Netherlands, 

with operations in forty-four countries and territories. It is comprised of independent local Dutch 

Rabobank branches and a large number of specialized international offices and subsidiaries. 

C. Facts 

1. The Fixing of LIBOR and Euribor 

a. LIBOR and its Fixing 

LIBOR is the most widely used benchmark interest rate in the world and affects market 

participants and consumers globally, including in the United States. LIBOR is the basis for 

settlement of many interest rate transactions, including over-the-counter ("OTC") derivatives 

products, such as swaps, and exchange-traded interest rate futures and options contracts, 

including the three-month and one-month Eurodollar contracts on the Chicago Mercantile 

Exchange ("CME"). It is also used as a barometer to measure strain in money markets and as a 

gauge of the market's expectation of future central bank interest rates. Approximately 

$350 trillion of notional swaps and $10 trillion ofloans are indexed to LIB OR. Measured by the 

notional value of open interest, the CME Eurodollar contract is the most liquid and largest 

notional futures contract traded on the CME and in the world. 

2 For purposes of this Order, the term "request" means a request for a preferential LIBOR or Euribor 

submission for a particular tenor. 

The term "senior manager" generally references Rabobank employees with responsibilities (either 

formally or informally delegated) broader than management of trading desks, although their 

responsibilities may have at times included managing trading desks. The term "senior manager" does not 

include executive managers or members ofRabobank's Executive Board or Supervisory Board. 

4 . Most of the individuals involved in this conduct are no longer employed at Rabobank. 

3 
During the relevant period, daily LIBORs were issued on behalf of the British Bankers' 

Association ("BBA")5 for ten currencies, including U.S. Dollar, Yen and Sterling, with fifteen 

tenors (i.e., durations for interest rates) ranging from overnight through twelve months. Certain 

currencies, including U.S. Dollar and Yen, are frequently referenced in interest rate contracts. 

One, three and six months are the most common tenors referenced in LIBOR-indexed 

transactions. 

According to the BBA, LIBOR "is based on offered inter-bank deposit rates" and each 

panel bank is required to "contribute the rate at which it could borrow funds, were it to do so by 

asking for and then accepting inter-bank offers in reasonable market size just prior to [11 :00 a.m. 

London time]. "6 

Every business day shortly before 11:00 a.m. London time, the banks on the LIB OR 

panels ("panel banks") submit their rates to Thomson Reuters, and a trimmed averaging process 

is used to exclude the top and bottom quartile of rates with the remaining rates being averaged 

for each tenor. That average rate becomes the official BBA daily LIBOR (the "LIBOR fixing"). 

The BBA then makes public the daily LIBOR fixing for each currency and tenor, as well as the 

daily submissions of each panel bank, through Thomson Reuters and the other data vendors 

licensed by the BBA. This information is made available and relied upon by market pmiicipants 

and others throughout the world, including in the United States. 7 

b. Euribor and its Fixing 

Euribor is used internationally in derivatives contracts, including interest rate swaps and 

futures contracts. 8 According to the Ban1c for International Settlements, OTC interest rate 

derivatives, such as swaps and forward rate agreements ("FRAs"), comprised contracts worth 

over $187 trillion in notional value at the end of2012. 

The BBA is a trade association for the United Kingdom banking and financial services sector and is 

comprised of member banks. On July 9, 2013, NYSE Euronext Rate Administration Limited announced 

that it had been appointed as the new administrator for LIB OR. The transfer of the administration from 

BBA LIBOR Ltd, the subsidiary of the BBA, is expected to be completed in early 2014, once the 

Financial Conduct Authority's ("FCA") authorization ofNYSE Euronext Rate Administration Limited is 

complete. 

6 This definition of LIB OR has been used by the BBA from 1998 to the present. 

In June 2008, the BBA clarified that a panel bank's submissions must be "submitted by members of 

staff at a bank with primary responsibility for management of a bank's cash, rather than a bank's 

derivative book." The BBA also clarified that "LIBOR is a pure cash fixing" and that panel banks could 

not contribute a rate based on the pricing of any derivative financial instrument. 

In October 2011, the Chicago Mercantile Exchange launched the Euribor Futures contract, which 

settles based on the three-month Euribor. 

4 
During the relevant period, daily Euribors were issued on behalf of the European Banking 

Federation ("EBF")9 for fifteen tenors, ranging from one week to twelve months. One, three and 

six months are the most common tenors referenced in Euribor-indexed transactions. 

According to the EBF, Em·ibor is defined as the rate "at which Euro interbank term 

deposits are offered by one prime bank to another prime bank" within the Economic and 

Monetary Union of the European Union ("EMU") at 11:00 a.m. Central European Time ("CET") 

daily. 

Euribor is determined using submissions from a panel of over 40 mostly European banks 

considered to be the most active in the Euro zone with the highest volume of business in the 

EMU. According to the EBF instructions, panel banks "must provide their quote submissions to 

the best of their knowledge," based on their observations of where the Euro is trading in that 

market. 

Like the BBA panel banks, the Euribor panel banks submit their rates electronically to 

Thomson Reuters, which manages the official Em·ibor process by collecting the submitted rates 

from the contributing banks, calculating the rate, and then releasing it for publication just before 

noon CET. Thomson Reuters computes that day's published Euribor by eliminating the highest 

and lowest fifteen percent of submissions collected, and averaging the remaining submissions. 

That average rate becomes the official daily EBF Euribor (the "Euribor fixing"). On behalf of 

EBF, Thomson Reuters then issues the Em·ibor fixing and the submissions of each panel bank to 

its subscribers and other data vendors. Through these licensing agreements with third parties, 

such as Thomson Reuters, EBF disseminates the information throughout the world, including in 

the United States. 

******* 

By their definitions, LIBOR and Euribor require that the submitting panel banks exercise 

their judgment to determine the rates at which, depending on the benchmark, they or a prime 

bank may obtain unsecured funds in the respective London and Euro interbank markets. These 

definitions require that submissions relate to funding and do not permit consideration of factors 

umelated to the costs of borrowing unsecured funds, such as cash or derivatives trading 

positions. 

2. Rabobank's LIBOR and Euribor Submission Processes and the Embedded 

Conflicts of Interest 

Rabobank is a member of both the BBA and the EBF, and is, or was during the period of 

2005 through early 2011, one of the panel banks that submits rates for the determination of 

LIBOR in various cmTencies including U.S. Dollar, Yen and Sterling, and Euribor. Until 

January 2009, Rabobank made its LIBOR submissions for certain currencies, including U.S. 

Dollar, Yen and Sterling, out of its London office, and Euribor submissions out of its Utrecht, 

Netherlands headquarters office. In January 2009, Rabobank transferred the LIBOR submission 

9 The EBF is an unregulated non-profit association ofthe European banking sector based in Brussels, 

Belgium. Among other functions, the EBF oversees the publication ofEuribor. 

5 
process for all currencies, except Sterling, to its Utrecht office, as part of its efforts to centralize 

business operations. 

Rabobank assigned responsibility for making its LIBOR and Euribor submissions to 

traders who traded both cash and derivatives trading products. 10 These traders regularly 

transacted in interbank cash deposits and loans to meet the bank's funding needs each day in all 

currencies, and in derivatives products, including interest rate swaps, forward rate agreements, 

foreign exchange forwards, cross-currency swaps, overnight index swaps and tenor basis swaps. 

The traders engaged in derivatives transactions not only to hedge risk but also to generate profits 

in a proprietary fashion. The positions held by the traders were often priced off of LIB OR, 

particularly U.S. Dollar, Yen and Sterling LIBOR, and Euribor, and settled or reset on 

International Monetary Market ("IMM") dates, which are quatierly dates in March, June, 

September and December. LIB OR and Euribor submissions, by definition, are to relate solely to 

the costs of borrowing in the relevant markets, and not upon derivatives trading positions. By 

assigning derivative traders whose profits depended upon the fixings ofLIBOR and Euribor, 

Rabobank created an inherent conflict of interest. 

This conflict of interest was heightened by the fact that Rabobank had its LIB OR and 

Euribor submitters sitting next to and working with the other derivatives traders on trading desks. 

Rabobank managers and at least one senior manager expected the traders and submitters to 

communicate about relevant market conditions and individual trading positions. A senior 

manager in London ("Senior Manager 1 "),who was Rabobank's representative to the BBA, 

oversaw cash and derivatives traders, which included the traders responsible for Rabobank's 

LIBOR submissions for all currencies and Euribor. A former LIBOR submitter himself, Senior 

Manager 1 encouraged communication among the traders and submitters, and even instructed 

one Yen LIBOR submitter to contact derivatives traders in another office to obtain the rates to 

submit each day. Traders, submitters and Senior Manager 1 openly discussed individual trading 

positions across the trading desks, and also utilized Bloomberg chat terminals and email to 

provide each other with instant and continuous written communication about such positions. 

This free flow of information increased the risk that submitters would make LIB OR and Em·ibor 

submissions which were beneficial to Rabobank traders' derivatives trading positions. 

Rabobank's LIBOR and Euribor submitters considered ce1iain market information in 

determining Rabobank's submissions, such as Rabobank's cost of funds, money market 

transactions, broker indications, Rabobank's liquidity position, Rabobank's submissions from the 

previous day and Rabobank's credit rating vis-a-vis other panel banks. However, due to the 

submitters' dual role as submitters and traders, and the open communication policy promoted by 

certain senior managers which encouraged the sharing of information about trading positions, 

several submitters routinely and improperly considered their own and other traders' trading 

positions when determining their LIBOR and Euribor submissions. As a result, the submitters 

often skewed their U.S. Dollar and Yen LIBOR and Euribor submissions, and, on occasion, 

Sterling LIBOR submissions, to benefit those trading positions by attempting to manipulate the 

fixings of LIB OR and Euribor. In addition, ce1iain submitters and traders coordinated, at times, 

with brokers and traders from at least two other panel banks in their attempts to manipulate Yen 

10 In 2004, Rabobank combined its money market desks (which were responsible for cash trading) with 

its shott-term derivatives trading desks. 

6 
LIBOR. Rabobank's Euribor submitter also accommodated requests from traders at a non-panel 

bank for preferential Euribor submissions to benefit those traders' derivatives trading positions. 

By failing to separate responsibilities for making LIBOR and Euribor submissions from 

its trading functions, Rabobank created an embedded conflict of interest that incentivized 

submitters to prioritize profit over their responsibility to make an honest assessment of the costs 

of borrowing unsecured funds when submitting rates to the BBA and EBF. As such, Rabobank 

allowed an environment to exist that yielded unfettered opportunities to attempt to manipulate 

LIBOR and Euribor submissions for the benefit of trading positions held by Rabobank's traders, 

and the traders took advantage of those opportunities. Rabobank's manipulative conduct 

involved over two dozen traders, some of whom were desk managers, and the knowing 

involvement of at least one senior manager, Senior Manager 1. 

3. Rabobank's Internal Control Failures Allowed Misconduct to Occur 

During the entire period at issue here, from mid-2005 through early 2011, Rabobank 

failed to recognize and address the conflicts of interest, and failed to adequately supervise its 

derivatives traders and submitters. Fmiher, Rabobank did not have any policies, internal controls 

or procedures for determining, monitoring or supervising its LIBOR and Euribor submissions to 

ensure that Rabobank's submissions reflected an honest assessment of the costs of borrowing 

unsecured funds in the interbank markets. 

In April 2010, Rabobank received the Commission's request that it conduct an internal 

investigation of its U.S. Dollar LIB OR practices. During this investigation, on November 30, 

2010, a Rabobank senior manager ("Senior Manager 2") informed submitters that it was 

inappropriate for derivatives traders to provide the rates to submit for LIBOR or Euribor. 

Despite this admonishment, Rabobank failed to adequately improve its internal controls to 

monitor its traders, resulting in at least one trader's continued attempts to manipulate Yen 

LIBOR through the use of brokers into early 2011. 

Rabobank's failure to provide internal training or standards addressing benchmark 

interest rate submissions, allowance of inappropriate communications amongst traders and 

submitters, and related conflicts of interest amplified the potential for misconduct and permitted 

it to continue for a number of years. 

4. Rabobank Made False Reports and Attempted to Manipulate U.S. Dollar 

LIBOR to Benefit Rabobank Trading Positions 

Over a period of more than three years, from at least mid-2005 through at least late 2008, 

Rabobank frequently attempted to manipulate U.S. Dollar LIBOR, and often made false LIBOR 

submissions in furtherance of those attempts. Rabobank's U.S. Dollar LIBOR submissions were 

made out of the London office by two traders ("U.S. Dollar Trader-Submitter 1" and "U.S. 

Dollar Trader-Submitter 2"), who were supervised by Senior Manager 1. Senior Manager 1 

accepted and relayed requests for preferential LIBOR submissions from traders and, as noted 

above, encouraged the submitters and traders he supervised to speak openly about their trading 

7 
positions and make LIBOR submissions to benefit Rabobank traders' U.S. Dollar trading 

positions. 

For the entire relevant period ofmid-2005 through 2008, a senior London derivatives 

trader ("Senior U.S. Dollar Trader"), known by the submitters and others as the "Ambassador" 

or "Ambass," sitting with the U.S. Dollar Trader-Submitters at the same desk, regularly made 

oral requests for preferential U.S. Dollar LIBOR submissions. In a few instances, the Senior 

U.S. Dollar Trader made written requests as well. The Senior U.S. Dollar Trader often barked 

his requests across the desk and expected his requests to be followed. 

Another U.S. Dollar derivatives trader and his manager located in Rabobank's New York 

office ("U.S. Dollar Trader" and "U.S. Dollar Desk Manager") also made preferential requests 

through at least June 2008 for LIB OR rates utilizing Bloomberg chats and internal emails to the 

U.S. Dollar Trader-Submitters. 11 

The U.S. Dollar Trader-Submitters and Senior Manager 1 knew that the derivatives 

traders were making these LIBOR requests to benefit their trading positions. The U.S. Dollar 

Trader-Submitters improperly took the preferential LIBOR requests into account and submitted 

Rabobank's U.S. Dollar LIBOR in order to benefit their respective trading positions. Not 

surprisingly, given the transparent conflict of interest Rabobank created by having traders act as 

submitters, the U.S. Dollar Trader-Submitters took into account their own trading positions when 

making their U.S. Dollar LIB OR submissions. For example, on September 19, 2007, U.S. Dollar 

Trader-Submitter 1 commented to another colleague, "today i have fixing so am low on the 3mth 

... I did )*3's fra over today last night so want low fixing today." Thus, the U.S. Dollar TraderSubmitters' LIBOR submissions reflected their and other traders' financial interests, rather than 

the costs of borrowing U.S. Dollars in the London interbank market. 

Below are a few examples of the written requests from the traders to the submitters and 

the acceptance of those requests by the submitters: 12 

August 2, 2005: (emphasis added) 

Email from U.S. Dollar Desk Manager to Senior Manager 1: 

Subject: Tomorrow's 6mL 

If you are indifferent, can you please set tomorrow's 6mL as high as 

possible? 

Have a large reset here in NY. Thanks ... [U.S. Dollar Desk Manager] 

11 Rabobank derivatives traders located in Singapore, Hong Kong and Tokyo also made a few requests 

for beneficial U.S. Dollar LIBOR submissions. 

12 The communications quoted in this Order contain shmihand trader language and many typographical 

errors. The shmihand and errors are explained in brackets within the quotations only when deemed 

necessaty to assist with understanding the discussion. 

8 
Reply from Senior Manager 1 to U.S. Dollar Desk Manager: 

Subject: RE: Tomorrow's 6mL 

Ok , leave it with us , will do our best 

Thx [Senior Manager 1] 

Reply from U.S. Dollar Desk Manager to Senior Manager 1: 

Subject: RE: Tomorrow's 6mL 

Atta boy, [Senior Manager 1] .. .4% it is! 

June 30, 2006: 

U.S. Dollar Trader: 

U.S. Dollar Trader-Submitter 1: 

September 1, 2006: 

U.S. Dollar Trader: 

MORNING MATE, HOPE U GOT THROUGH 

YESTERDAY OK. USUAL REQUEST .. LOW 

1S, HIGH 3S IF U CAN CHEERS [U.S. Dollar 

Trader-Submitter 1], CATCH U LATER 

will do fell a ... 

HEY [U.S. Dollar Trader-Submitter 1], HIGH 

3MTH LIBOR FOR UR OLD MUCKER PLS 

CHIEF! 

U.S. Dollar Trader-Submitter 1: sure mate .. 

September 15, 2006: (emphasis added) 

U.S. Dollar Trader: HEY [U.S. Dollar Trader-Submitter 1] LONG 

TIME NO SPEAK ... USUAL FAVOURS, 

CAN U KEEP 3S LIBORAT 39 FOR THE 

NEXT FEW DAYS PLS MATE, CHEERS 

SPK 2 U SOON, [U.S Dollar Trader] 

U.S. Dollar Trader-Submitter 1: will do mate 

U.S. Dollar Trader: CHEERS [U.S. Dollar Trader-Submitter 1] 

October 13, 2006: (emphasis added) 

U.S. Dollar Trader: 

U.S. Dollar Trader-Submitter 1: 

HOW'S IT GOING [U.S. Dollar TraderSubmitter 1]?? LOOKING FORWARD TO 

THE WEEKEND I BET - AM OFF ON HOLS 

FOR A WEEK MYSELF, CANNOT WAIT!! 

IF U WOULD BE SO KIND AND KEEP 3S 

LOW FOR MONDAYS FIX ... THINK IT'LL 

COME IN AT 37.5, WOULD BE A BIT 

PAINFUL IF WAS MUCH HIGHER ... 

ANYW A YS I'M BLABBING .. HOPE U R 

GOOD, [U.S. Dollar Trader] 

hallo mate .. this week has been awful . Worst 

for me for a long long time . what's your 

thoughts on this mate .. I'll smi out the 3's & 

where u off to on holiday . 

9 
March 16,2007: 

U.S. Dollar Trader: 

Senior Manager 1: 

U.S. Dollar Trader: 

August 13, 2007: (emphasis added) 

U.S. Dollar Trader: 

U.S. Dollar Trader-Submitter 1: 

U.S. Dollar Trader: 

one last thing, high 3mth libor on monday pls 

ok will tell [U.S. Dollar Trader-Submitter 1] 

cheers, hv a good wknd 

WE'VE DEALT ... GONNA NEED A 

FRICKIN HIGH 6 MTH FIX TOMORROW 

IF OK WITH U ... 5.42? 

send me an e mail matey for tomorrow .. my 

brain can't cope!! 

TELL ME ABOUT IT ... CANT BELIEVE 

HOW THIS MARKET IS MOVING .. . I'LL 

SEND A MAIL , WRITE A POST IT NOT 

AS WELL, ITS 750 MIO 6MTH FIX! 

COULD BE RISKY! 

U.S. Dollar Trader-Submitter 1: good luck mate 

September 7, 2007: (emphasis added) 

U.S. Dollar Trader: 

U.S. Dollar Trader-Submitter 1: 

U.S. Dollar Trader: 

WOW ... WHAT DO LIBORS DO NOW [U.S. 

Dollar Trader-Submitter 1] .. WILL U DROP 

THEM TOMORROW? 

I think banks need to keep them high mate .. 

how can they drop them too much if they can't 

get the cash in to cover exsposure ... 

OK MATE, IF U CAN KEEP EM UP 

THERE THAT WOULD SAVE MY ARSE A 

BIT (TIL SEP ROLLS OFF!), CHEERS 

MATEY 

U.S. Dollar Trader-Submitter 1: will do my best .. 

October 17, 2007: 

Email from Senior U.S. Dollar Trader to U.S. Dollar Trader-Submitter 1: 

Subject: 1 month libor 

A nice low 1 month for the rest of the week please matey. Cheers. 

March 17, 2008: (emphasis added) 

Email from U.S. Dollar Trader to U.S. Dollar Trader-Submitter 1, U.S. Dollar 

Trader-Submitter 2 and Senior Manager 1: 

Subject: Libors 

I know libors r gonna come off today, I hv quite a lot of fixings today, so the 

higher the better for me pls 

Thanks vm 

10 
The mostly oral requests ofthe Senior U.S. Dollar Trader, the Ambassador, took 

precedence over the requests made by other U.S. Dollar derivatives traders. The other traders 

deferred to the Senior U.S. Dollar Trader if their requests conflicted with his requests. The 

Senior U.S. Dollar Trader expected the U.S. Dollar Trader-Submitters to follow his requests 

when making Rabobank's U.S. Dollar LIBOR submissions. If his requests were not honored, the 

Senior U.S. Dollar Trader complained and angrily expressed his displeasure. The following are 

examples of the deference given to the Senior U.S. Dollar Trader and his expectations and 

reaction if his requests were not followed: 

August 15, 2006: (emphasis added) 

U.S. Dollar Trader: 

U.S. Dollar Trader-Submitter 1: 

November 29, 2006: (emphasis added) 

IF THE AMBASS DOESN[']T HV ANY 

PREFERENCES, CAN I HAVE LOW lS 

AND 3S THE NEXT FEW DAYS PLS 

MATEY ... CHEERS HOPE U R GOOD, [U.S. 

Dollar Trader] 

His exact word's are .. "i don't give a fl'ck" .. 

U.S. Dollar Trader: HI MATE, LOW lS HIGH 3S LIBORPLS !!! 

DONT TELL THE AMBASS HAA 

HAAAAAAA. SOLD THE MARKET 

TODAY DOOOOOOHHHH! 

Senior Manager 1: OK MATE, WILL DO MY BEST ... SPEAK 

LATER 

U.S. Dollar Trader: CHEERS GEEZ, BANG ON THE MONEY! 

Senior Manager 1: NO WORRIES , I HAD TO WORK MY WAY 

OUT OF AN AMBASS HEADLOCK TO GET 

THOSE IN! 

September 26, 2007: (emphasis added) 

Email from U.S. Dollar Trader to U.S. Dollar Trader-Submitter 2, a senior Yen 

LIB OR trader-submitter, and Senior Manager 1: 

Subject: High 3s tomorrow pis gents 

Subsequent email from U.S. Dollar Trader to U.S. Dollar Trader-Submitter 2: 

Subject: RE: High 3s tomorrow pls gents 

25 (or higher) would be great ..... CHEERS[ ... ] 

Reply from U.S. Dollar Trader-Submitter 2 to U.S. Dollar Trader: 

U do realise the ambass wants the opposite ,ill do my best mate 

Reply from U.S. Dollar Trader to U.S. Dollar Trader-Submitter 2: 

Subject: RE: High 3s tomorrow pis gents 

Bugger .. We fixed at 24, anything higher is a bonus! 

11 
September 18, 2008: (emphasis added) 

Email from Senior U.S. Dollar Trader to U.S. Dollar Trader-Submitter 2: 

Subject: I don't want to have a row about it [U.S. Dollar Trader-Submitter 2] 

but can't understand why you were such an arse this morning? 

[ ... ] 

[ ... ]Before justifying from a cash perspective where the true rate should be etc, 

I, and you, know that if you were short of 1 month fixing you'd have put in a 

mid '60's LIBOR. P+L wise I couldn't give a fack but I just can't get my head 

around why you were being such an arse. I thought we were mates! 

U.S. Dollar Trader-Submitter 2 reply to Senior U.S. Dollar Trader: 

Mate I had no intention to be or desire to be, I have no upside upseting you or 

setting the libor too high , I spoke to three diffewrent brokers and was told 

anywhere from 2.65 to 3.30 1month .... .i honestly thought and still do think 2.78 

was fair, obviuosly from ur perspective nearer 2.70 would have helped and I 

apologise for that ... .i knew you trying to broke me to an extent , but as you know 

anything lower from me would only have helped by 1-2bp ... the libor did come it 

at 2.7475 , so I was actually closest top the actual number. .. for what its worse .. .I 

do not enjoy working here anymore, covering [U.S. Dollar Trader-Submitter 1] 

is a pain and doing the libors is a pain and to be honest the last few days have 

hardly been profitable for me . So I would rather we move on from this , and 

anything u need tom tell me again and ill try my best 

Senior U.S. Dollar Trader reply to U.S. Dollar Trader-Submitter 2: 

You were above the average when I was looking for a low settlement ... [Panel 

Bank A]+ [Panel Ban1c B] 2.65, [Panel Bank C], 2.63, even [Panel Ban1c D] 2.70. 

you wanted to go 2.95%. I'll move on but still can't get my head around you 

sometimes. As I said, it's faclc all to do with the P+L! Still, it's your prerogative. 

Anyway, best of luck this evening and try not to take out your vindictiveness on 

me, consciously or unconsciously. Life's too short. 

5. Rabobank Made False Reports and Attempted to Manipulate Yen LIBOR, 

At Times Successfully, to Benefit Rabobank Trading Positions 

For nearly six years, from at least mid-2005 through at least early 2011, Rabobank, 

through its submitters and traders, frequently attempted to manipulate Yen LIB OR and 

consistently made false submissions in furtherance of those attempts. At times, Raboban1c's 

attempts to manipulate Yen LIBOR were successful. Several Raboban1c traders transmitted 

hundreds of internal requests to its Yen LIB OR submitters for preferential LIB OR submissions 

to benefit the traders' LIBOR-based trading positions. The submitters accommodated those 

requests on a regular basis and certain submitters also took into account their own trading 

positions when making LIBOR submissions. 

Additionally, at least one Rabobank submitter and one trader at times coordinated with 

external parties, including another panel bank's Yen LIBOR submitter and brokers, in their 

attempts to manipulate the Yen LIB OR fixings. 

12 
Rabobank's practice of making and accommodating Yen LIBOR requests involved 

numerous traders and submitters in multiple Rabobank offices, including London, Utrecht, 

Tokyo, Singapore, and Hong Kong. 

a. Rabobank's Attempts to Manipulate Yen LIBOR Pre-2009 

i. Internal Requests to Submitters by Rabobank's Traders 

From at least mid-2005 through the end of2008, the primary Rabobank Yen LIBOR 

submitter was a senior Yen cash and derivatives trader ("Senior Yen Trader-Submitter") based 

out ofRabobank's London office. The Senior Yen Trader-Submitter's supervisor, Senior 

Manager 1, and another Yen derivatives trader ("Yen Trader-Submitter 1") acted as back-up Yen 

LIB OR submitters. The Yen Trader-Submitters communicated with the Yen derivatives traders 

about their trading positions and received their frequent requests for beneficial Yen LIB OR 

submissions. These Yen Trader-Submitters regularly skewed Rabobank's Yen LIBOR 

submissions to benefit the traders' cash and derivatives trading positions. 

The Senior Yen Trader-Submitter received requests from Yen derivatives traders and 

desk managers for beneficial LIBOR submissions, which he acknowledged he intended to 

accommodate in making Rabobank's Yen LIBOR submissions. On many occasions, he even 

solicited requests from the Yen derivatives traders to determine if they had Yen LIBOR-based 

trading positions. The Senior Yen Trader-Submitter considered the various traders' positions 

and, oftentimes, the sensitivity of his own cash and derivatives positions to the Yen LIB OR 

fixings, and then moved his Yen LIB OR submissions at least one basis point higher or lower to 

benefit those positions. Thus, the Senior Yen Trader-Submitter's Yen LIB OR submissions 

reflected his and other traders' financial interests, rather than the costs of borrowing Yen in the 

London interbank market. When his supervisor, Senior Manager 1, received similar requests 

from Rabobank's Yen traders, he agreed to forward them to the Yen Trader-Submitters for 

inclusion in their Yen LIB OR submissions. 

Yen Trader-Submitter 1 never based Rabobank's Yen LIBOR submissions on an 

independent assessment of the costs of borrowing funds in the London Yen Interbank market 

when he acted as the Yen LIB OR submitter. Neither Senior Manager 1 nor the Senior Yen 

Trader-Submitter trained Yen Trader-Submitter 1 on how to properly make LIB OR submissions. 

Instead, Senior Manager 1 instructed Yen Trader-Submitter 1 to ask the Yen traders in 

Rabobank's Asia offices for their submission preferences. Yen Trader-Submitter 1 merely 

copied and submitted the rates he received from traders as Rabobank's Yen LIBOR submissions, 

thereby supporting the traders' attempts to manipulate Yen LIB OR for the benefit of their trading 

positions. Even on the occasion when the traders did not provide preferred rates, Senior 

Manager 1 further instructed Yen Trader-Submitter 1 to submit the previous day's Yen LIB OR 

fixings, rather than require an assessment of the costs of borrowing Yen. 

Rabobank's traders made hundreds of written preferential Yen LIBOR requests from 

Rabobank offices in Tokyo, Singapore and Hong Kong. At times, the managers of the trading 

desks made requests directly or through traders to benefit their own trading positions and 

13 
facilitated similar conduct of the traders that they supervised. In making requests, the traders 

identified at times the specific tenor and/or direction they wanted for a particular submission 

(i.e., high, low, or unchanged); in other instances, traders requested that a specific rate be 

submitted. The largest number of requests for preferential Rabobank Yen LIBOR submissions 

came from Rabobank's senior Yen cash and derivatives trader who was primarily based in 

Tokyo ("Senior Yen Trader"). The traders' requests for beneficial submissions were usually for 

the three key tenors: one, three and six months. 

The following examples demonstrate the frequency and commonness of the traders' 

requests and the easy acceptance of those requests by the submitters and Senior Manager 1: 

September 19, 2005: 

Yen Desk Manager 1 : 

Senior Manager 1 : 

Yen Desk Manager 1: 

May 10, 2006: (emphasis added) 

Senior Yen Trader: 

.. .IS [Senior Yen Trader-Submitter] INTODA Y 

OR YOU DOING THE JPY AS WELL? 

NOT IN TODAY MATE, WHAT DO U 

NEED? 

I DONT WANT TO INFLUENCE 

ANYTHING BUT IF IN DOUBT DONT PUT 

EM DOWN AS IM LONG ABT 2000 

FUTURES EQUIV, BUT YOUR CALL 

MATE, CHEERS 

... where do you think 3m libor is going to be 

tdy? 

Senior Yen Trader-Submitter: .... for info [Yen Desk Manager 1] asl{ed to set a 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

low 6m .. so to make a smoother curve I will 

prob look low in 3m too ... 

. . . where r u going to put for 3mth libor? 

... well with [Yen Desk Manager 1 's] request of 

a 0.26 in 6m- I think I can go no higher than 

18 ... 

. . . libor is not as high as expected ... 

no but with 3 banks setting 11 + 12 its not 

surprising ... once they see how out they are it 

should correct upwards mate 

are they just trying to manipulate the libor? or 

they just forgot to change? what do u think? 

i think they are just stupid ... .it must be pretty 

embarrassing to set such a low libor ( i was 

very embarrased to sey [set] my 6 mth- but 

wanted to help [Yen Desk 

Manager 1]).tomorrow it will be more like 33 

from me 

14 
May 11, 2006: (emphasis added) 

Email from Yen Desk Manager 1 to Senior Yen Trader-Submitter: 

Subject: 6 mth Libor 

Thanks for yest mate- although nearly in vain[.] I have one more big day where 

need it low so if in doubt mark it down a bit if you can[.] Whats your thoughts 

at mom anyway as to what it will be 28.5-29.5 its dealt quite a bit our here 

today[.] 

Cheers 

[Yen Desk Manager 1] 

Senior Yen Trader-Submitter reply to Yen Desk Manager 1: 

Subject: RE: 6 mth Libor 

Hi mate think 3m sets at 18 and 6m sets at 31 today mate ... will put in 

something rediculously low again tho- no probs [ ... ] 

Yen Desk Manager 1 reply to Senior Yen Trader-Submitter: 

Subject: RE: 6 mth Libor 

Thx mate 

I was actually shocked (and rogered as well...) when it was up there .. Was 

thinking 28 as well I guess with the demand for cash its being pushed up ... 

May 30, 2006: (emphasis added) 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

July 27, 2006: (emphasis added) 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

... what do u think todays 1m, 3m and 6m libor 

are going to be? 

well [Yen Desk Manager 1] wants a low 1 +6 

mth ... was going to set 1m .143m .286m .38 

yep that is because i have the opposit posy 

[opposite position] of him. 

oh dear - ok i try to be neutral [ ... ] 

ok mate cheers .... abt the libor ... i am happy as 

long as 1m libor is not too low tdy. c cheers 

amte ... 

... today if possible,, i wud like higher 1m 

lib or. 

ok mate- what lvl u want set? .. .i actually meant 

what lvl do u want me to set for the 1m libor 

fix ... i will set anything you need 

if u can be the same at yday or a bit higher 

than yesterday, im fine mate 

i'll set 37 ;) 

ok mate cheers 

15 
October 25, 2006: (emphasis in original) 

Yen Desk Manager 1 email to Yen Trader-Submitter 1: 

Subject: libors 

Hi mate 

I have a few chunky rolls in the 3 mth yen libors in the next few days. 

I don't want to compromise your integrity .. but if you've got ntg in it maybe a 

smidge lower today (actually shud be anyway as futures are a abt 1 higher 

anyway) and then high for Thurs and Fri would be great then I will be back in my 

box for another 2 weeks 

Cheers 

[Yen Desk Manager 1] 

Yen Trader-Submitter 1 reply to Yen Desk Manager 1: 

Subject: RE: libors 

sure no problem mate if you have a sec can i have the lvls plse 

regards [Yen Trader-Submitter 1] 

Yen Desk Manager 1 reply to Yen Trader-Submitter 1: 

Subject: RE: libors 

Hi mate 

Think you would get away with what you put in yesterday, except from lm-6m 

maybe 1 bp lower as dec future has had a little rally today. and the other futures 

pretty much unchanged, maybe even 0.5 lower. 

From 7 mth outwards you would be fine leaving same as yesterday as the futures 

from March outwards are pretty much unchanged, maybe even 0.5 lower. I have 

your libors from yesterday if you don't have a record just let me know and I will 

bosh them over 

Cheers 

[Yen Desk Manager 1] 

Yen Trader-Submitter 1 reply to Yen Desk Manager 1: 

Subject: RE: libors 

ok sure yes if you have them thxs that would be great would be easier 

thxs mate 

November 8-9,2006: (emphasis added) 

Yen Desk Manager 1 email to Senior Yen Trader-Submitter: 

Subject: mng skip 

Hi mate 

Got a few big 3mth fixings in next 2 days, any chance you cud bump it up a 

couple? 

Senior Yen Trader-Submitter reply to Yen Desk Manager 1: 

Subject: RE: mng skip 

will set them high and dry skip! 

16 
Yen Desk Manager 1 reply to Senior Yen Trader-Submitter: 

Subject: RE: mng skip 

Thx skip, 1 more today- only has to be 3mths, others do as you pls, then im 

relatively square for a while .. 

Cheers 

Senior Yen Trader-Submitter reply to Yen Desk Manager 1: 

Subject: RE: mng skip 

no prob mate will set it high again .. .is 46 lvl ok or higher? 

February 9, 2007: (emphasis added) 

Yen Desk Manager 1 email to Senior Yen Trader-Submitter: 

Subject: 3 mth libors 

Mate, be great if you could keep your 3 mth libor unchanged today if you can 

get away with it and its ok with your posy [position]. 

Senior Yen Trader-Submitter reply to Yen Desk Manager 1: 

Subject: RE: 3 mth libors 

you need a high one? ..... no prob skip 

Yen Desk Manager 1 reply to Senior Yen Trader-Submitter: 

Subject: RE: 3 mth libors 

Yes pls mate, my only major fixing for a while, cheers 

Good cut and reverse posy [position] on yen a few weeks ago mate 

Ive been swimming against the tide for the last few days. But the more I think I 

should cut even at these crap risk /reward levels 

seeya 

Senior Yen Trader-Submitter reply to Yen Desk Manager 1: 

Subject: RE: 3 mth libors 

yep market got itself in right pickle again .... to be honest i'm pretty flat on 

book now- cut my losses and given up! off next week mate so ifu need any libor 

requests next week - give [Yen Trader-Submitter 1] a shout 

cheers skipper 

February 14,2007: 

Yen Desk Manager 1: 

Yen Trader-Submitter 1: 

March 14,2007: 

Yen Desk Manager 1: 

Senior Manager 1: 

Can you keep your 6m yen libor at 0.62 today if 

poss as have a large fixing today? 

sure will do mate 

IS [Yen Trader-Submitter 1] IN MATE? 

NOT YET , HAD AN APPOINTMENT THIS 

MORNING, SO WILL BE IN AROUND 30 

MINS , CAN I HELP ? 

17 
Yen Desk Manager 1 : 

Senior Manager 1: 

August 21, 2007: (emphasis added) 

Senior Yen Trader: 

Yen Trader-Submitter 1: 

Senior Yen Trader: 

Yen Trader-Submitter 1: 

Senior Yen Trader: 

Yen Trader-Submitter 1: 

Senior Yen Trader: 

Yen Trader-Submitter 1 : 

March 18, 2008: (emphasis added) 

Yen Desk Manager 2: 

Senior Yen Trader: 

Yen Desk Manager 2: 

March 19, 2008: (emphasis added) 

Senior Yen Trader: 

Senior Yen Trader-Submitter: 

Senior Yen Trader: 

NO WORRIES MATE, I THINK [Senior Yen 

Trader-Submitter] JUST WANTED HIM TO 

NUDGE UP A FEW OF THE LIBORS .. WILL 

SEND HIM A MAIL 

OK CC [Senior Euro Trader] AND [U.S. Dollar 

Trader-Submitter 1] ON IT ASWELL MATE, 

JUSTIN CASE 

Hi mate If you can make 1 month LIB OR 

higher today, that would be a help mate. 

Ok what level you looking at ? 

If possible, woud prefer it to be 0.82% 

Ok mate will do ... 

... Where are you setting 3mth and 6mth 

libor today? 

You tell me what you want mate he has 

no fixing at mom 

Hi mate lm 0.82 2m 0.92 3m 1.00 6m 

1.06 If you can put those rates ,, would be 

nice mate 

Great will do if you want to give me them 

each day ill input whatever you want mate 

ok cheers 

Because there will be 1650 fixings today 

please make the LIBOR as high as possible 

Understood ... [Senior Yen Trader-Submitter] 

set it on 1.02 yesterday, so I request to put it 

on 1.10. This change will have an impact of 

+0.1 bp 

Splendid 

We have loads of 6mth fixings today. If 

possible, could you set 6m libor to 1.10% 

please? We don't have pmiicular interest in 

other libm·s. 

Sry just to confirm 6m you want at 1.1 0??? Ok 

will do that but I will prob get a phone call at 

I set 02 yesterday and brokers reckon 

everything a little lower today ... 

Actually,, [Yen Desk Manager 2] would like 

6m to be higher today .... If it is not appropriate, 

18 
Senior Yen Trader-Submitter: 

July 31, 2008: 

Yen Desk Manager 2: 

Senior Yen Trader-Submitter: 

August 6, 2008: 

Yen Desk Manager 2: 

Senior Yen Trader-Submitter: 

Yen Desk Manager 2: 

August 14, 2008: 

Yen Trader-Submitter 1: 

Yen Desk Manager 2: 

Yen Trader-Submitter 1: 

Yen Desk Manager 2: 

Yen Trader-Submitter 1 : 

October 7, 2008: (emphasis added) 

Yen Desk Manager 1: 

Senior Manager 1: 

Yen Desk Manager 1: 

it is fine mate, I will explain the situation to 

him. He will understand the situation ... 

Well its no prob mate- I can set it that 

high .... it will be quite funny to see the 

reaction! ... 

[Senior Yen Trader] MUST BE IN LONDON 

NOW. COULD YOU SET 6M LIBOR AT 0.96 

TODAY? I HAVE CHUNKY FIXING TILL 

NEXT MONDAY ... THANKS FOR YOUR 

HELP 

SURE MATE NO PROB - HAD A CALL 

FROM HIM THIS MARNING- JUST 

LANDED ... TOLD HIM TO TAKE IT EASY 

AND HAVE A BIG BREAKFAST- AS WE' 

RE TAKING HIM STRAIGHT TO THE PUB! 

GOOD MORNING. I HAVE ANOTHER 

SIDE OF FIXING TODAY AND 

TOMORROW CAN WE MAKE 6MTH 

LIBOR AT 0.987 THANKS A LOT 

OK HIGHER? ... SURE THING 

YES, ONLY TODAY AND 

TOMORROW ... THANKS 

... How's things? 

... Uh, actually I have a quite large fixing today, 

so ... 

Yeah sure 

Uh, could you please set like a 6 month's 

LIBOR at, like 94 or something? 

1.94, yeah? 6 months ... OK yeah no problem. 

Any other ones? ... 

Morning, mate, aright? ... LIBORs today, 

LIBORs, LIBORs, same? ... 

Where do you want 'em? 

... Smidgen lower? ... 

19 
October 17, 2008: 

Senior Yen Trader email to Senior Yen Trader-Submitter: 

Subject: 6m libor 

Hi mate 

If possible, could you keep setting 6m libor at 0.80% for a while please? 

Regards 

Senior Yen Trader 

Senior Yen Trader-Submitter reply to Senior Yen Trader: 

Subject: RE: 6m libor 

Hi mate - oh yes - we are now setting alllibors significantly under the market 

levels cheers 

Senior Yen Trader reply to Senior Yen Trader-Submitter: 

Subject: RE: 6m libor 

Actually as long as they are low, we are happy mate. cheers 

November 4, 2008: 

Senior Yen Trader email to Senior Manager 1, U.S. Dollar Trader-Submitter 1, 

and Yen Trader-Submitter 1: 

Subject: 6m libor 

Hi 

Could you set 6m libor at 0.98% today if possible please? 

Regards 

Senior Yen Trader 

Yen Trader-Submitter 1 reply to Senior Yen Trader, Senior Manager 1 and U.S. 

Dollar Trader-Submitter 1: 

Subject: RE: 6m libor 

SURE 

ii. Senior Yen Trader-Submitter's Coordination with External Parties 

Along with accommodating Rabobank traders' internal requests for preferential Yen 

LIB OR submissions, the Senior Yen Trader-Submitter coordinated, at times, with a broker at a 

London brokerage ("Brokerage A"), and a Yen LIB OR submitter at another panel bank ("Panel 

Bank C Yen Submitter") on the submission of Yen LIB OR. The Senior Yen Trader-Submitter 

colluded with these pmiies by (1) entertaining requests from the broker to alter Rabobank's Yen 

LIBOR submissions for the benefit of a Yen derivatives trader at UBS ("UBS Senior Yen 

Trader"); 13 and (2) coordinating Yen LIB OR submissions with the Panel Bank C Yen Submitter 

to benefit the trading positions of both Rabobank and Panel Bank C. 

13 On December 19, 2012, the Commission issued an Order Instituting Proceedings Pursuant to Sections 

6(c) and 6(d) of the Commodity Exchange Act Making Findings and Imposing Remedial Sanctions 

against UBS AG and UBS, finding, among other things, that the UBS Senior Yen Trader enlisted the aid 

20 
1. Collusion with a Broker to Assist the UBS Senior Yen Trader 

The Senior Yen Trader-Submitter communicated with a London Yen broker 

("Derivatives Broker AI") to discuss the Yen market generally and Yen LIBOR fixings in 

particular. 14 From at least May 2008 through at least September 2008, Derivatives Broker AI 

asked the Senior Yen Trader-Submitter at times to make pmiicular Yen LIB OR submissions, and 

on at least one occasion stated that the request was intended to benefit the derivatives trading 

positions of the UBS Senior Yen Trader, who was also a client ofDerivatives Broker AI. 

During the same period, the Senior Yen Trader-Submitter also informed Derivatives Broker Al 

that he received requests for particular Yen LIBOR submissions for certain tenors from the 

Senior Yen Trader. On at least one occasion, the Senior Yen Trader-Submitter indicated he 

would accommodate Derivatives Broker AI 's Yen LIBOR request on behalf of the UBS Senior 

Yen Trader along with the rate preference ofthe Senior Yen Trader when making Rabobank's 

Yen LIBOR submissions on that particular day. 

Some examples of these communications appear below: 

May 29, 2008: (via telephone) 

Senior Yen Trader-Submitter: .. .I'm gonna set at 7I ... unless [Senior Yen 

Trader] wants something higher 

July 18, 2008: (via telephone) (emphasis added) 

Derivatives Broker AI: [ ... ]What you going to set your 1 month 

Senior Yen Trader-Submitter: 

Derivatives Broker AI: 

Senior Yen Trader-Submitter: 

Derivatives Broker AI: 

Senior Yen Trader-Submitter: 

Derivatives Broker AI: 

Senior Yen Trader-Submitter: 

Derivatives Broker AI: 

Senior Yen Trader-Submitter: 

LIBOR today? 

I don't know, what do you reckon? 

65? 

Er. . .I don't know. I ain't got a clue, 65. He 

wants me to set 98 in the 6s 

That low, yeah? What does he want you 

setting 1's then? 

Nothing, he hasn't told me. 

65, then. That's good. Got someone asking 

here .. .If you can? 

Do you want me to set 65? 

Yeah, or as low as possible basically ... 

... Who's that? 

of brokers to attempt to influence the rates submitted by Yen LIB OR submitters at other panel banks. To 

support the UBS Senior Yen Trader, the brokers would, at times, contact Yen LIBOR submitters at 

certain panel banks, including Rabobank, to request them to skew their LIB OR submissions for the 

benefit of the UBS Senior Yen Trader. See http://www.cftc.gov/PressRoom/PressReleases/pr6472-12. 

14 Brokers act as intermediaries between major dealers in the cash and derivatives markets to facilitate 

execution of interdealer trades. Brokers assist banks in obtaining funding by facilitating the negotiation 

of deposits and loans, and in hedging those transactions with derivatives trades often referenced to 

LIB OR. 

2I 
Derivatives Broker AI: It's a geezer at UBS, [UBS Senior Yen 

Trader] 

Senior Yen Trader-Submitter: Alright well make sure he knows. 

Derivatives Broker AI: Yeah, he will now mate. Definitely, definitely, 

definitely. 

Senior Yen Trader-Submitter: You know, scratch my back, yeah, and all 

Derivatives Broker AI: Yeah oh definitely, yeah, play the rules 

September 22, 2008: (emphasis added) 

Derivatives Broker AI: LIBORs? 

Senior Yen Trader-Submitter: I was gonna ask you ... 

Derivatives Broker AI: .. . Low ls 3s and 6s if possible ... 76, 89 and 88. 

98 rather 6s. 

Senior Yen Trader-Submitter: Yeah alright- I'll see what I can do .. . If you 

want me to set them I'll set them ... [Senior 

Yen Trader] wants them low ... 

2. Collusion with the Panel Bank C Yen Submitter to Attempt to 

Manipulate Yen LIBOR 

From at least mid-2006 through at least October 2008, the Senior Yen Trader-Submitter 

communicated with a submitter at another panel bank, the Panel Bank C Yen Submitter, 

regarding Yen LIB OR submissions. The Senior Yen Trader-Submitter coordinated with and 

aided and abetted the Panel Ban1c C Yen Submitter in attempts to manipulate Yen LIB OR, and as 

a result, submitted false repmis concerning Yen LIB OR on occasion. 

The Senior Yen Trader-Submitter and the Panel Bank C Yen Submitter regularly 

communicated about the rates each would submit for Yen LIB OR. In these communications the 

Senior Yen Trader-Submitter sometimes informed the Panel Ban1c C Yen Submitter of the 

skewed Yen LIB OR submissions he was making on behalf of Raboban1c traders, and at times 

requested the Panel Barllc C Yen Submitter to make a similarly skewed submission for Panel 

Ban1c C, all to benefit the derivatives trading positions of the Rabobank traders. The Senior Yen 

Trader-Submitter admitted to the Panel Ban1c C Yen Submitter that he obliged such requests 

from Raboban1c's traders by making Yen LIBOR submissions that were" ridiclous," "incredibly 

high," or "obseenly [sic] high." 

The Panel Bank C Yen Submitter acknowledged the Senior Yen Trader-Submitter's 

requests and agreed to assist him. The Panel Bank C Yen Submitter also transmitted to the 

Senior Yen Trader-Submitter reciprocal requests for the adjustment of Yen LIB OR for the 

benefit of Panel Bank C' s trading positions. The Senior Yen Trader-Submitter in turn 

acknowledged and indicated his intent to provide mutual assistance to the Panel Ban1c C Yen 

Submitter. Some examples ofthese communications follow: 

22 
May 10, 2006: (emphasis added) 

Senior Yen Trader-Submitter: 

June 27, 2006: (emphasis added) 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

[ ... ] 

Panel Bank C Yen Submitter: 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

Senior Yen Trader-Submitter: 

July 6, 2006: (emphasis added) 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

July 27, 2006: (emphasis added) 

Senior Yen Trader-Submitter: 

Panel Banlc C Yen Submitter: 

Senior Yen Trader-Submitter: 

July 19, 2007: 

Panel Banlc C Yen Submitter: 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

re our conversation yesterday about 

libors ... for info i've been asked by my 

singapore man to help him out with a silly 

low 6m fixing today ..... just for your info 

just for your info skip .. .i need a high 1mth 

today - so i will be setting an obseenly high 1 

mth (6) 

sure mate no worries ... give us an idea where and 

I'll try n oblige ... ;) 

mrng mate ... my turn today ... what u going 3s 

libor ... hoping for a higher one .... 0.35 or u 

think that is pushing it a bit? 

nope - fine with me mate -will set 35 for you 

(b) 

(K) cheers dude 

no prob at all mate;) 

for info i need a high 1mth set today - i will 

be setting something ridiclous like 28 or 29 

for info 

cool suits me too to be honest ... 

morning skip .... my little ... [racial epithet 

redacted] friend in tokyo wants a high lm fix 

from me today .... am going to set .37- just for 

your info sir 

that suits mate as got some month end fixings 

so happy to ablige .. rubbery jubbery .. :-0 

'ansome cheers skip 

mrng beautiful.. .. .if u can would love a low 

fixing in 3s libor today .... (y) 

ok skip- what u need? no prob 

. 77 if poss but just no higher than yest!! 

23 
January 7, 2008: 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

March 28, 2008: (emphasis added) 

Senior Yen Trader-Submitter: 

Panel Bank C Yen Submitter: 

Senior Yen Trader-Submitter: 

September 25, 2008: (emphasis added) 

yes nice and toasty .... what would you like me to 

set for 1m mate? i've gone 70 so far .... or 

hogher? 

thats fine .. thx lad xx 

morning skip- [Senior Yen Trader] has asked 

me to set high libors today - gave me levels of 

1m 82, 3m 94 .... 6m 1.02 

sry mate cant oblige today ... i need em lowe!!! 

yes was told by [Derivatives Broker A 1] .. . ,just 

thought i'd let you lrnow why mine will be 

higher ... and you don't get cross with me 

Panel Bank C Yen Submitter: prob stupid ques and tell me to go 

away .. .. where r u pitching 6 s libor .... got a 

fixing .. . 

Senior Yen Trader-Submitter: hmmm- i have no idea skip! ..... not even sure of 

big figure! .. . where would you like me to set it 

mate? 

Panel Bank C Yen Submitter: u n me both ... .i need a low one... anything 

arnd 1 pc would be ok. ... but i doubt it 

October 8, 2008: 

Senior Yen Trader-Submitter: 

Panel Banlc C Yen Submitter: 

Senior Yen Trader-Submitter: 

am lower today fyg ... [Senior Yen Trader] 

wanted 1.10 in 6's ok skip 

oh buggar wished u told me ealier .... i set same 

i' ll see if i can chnage 

sry mate- he just got onto me 

b. Rabobank's Attempts to Manipulate Yen LIBOR From 2009 Through Early 

2011 

i. Rabobank's Senior Yen Trader Becomes Yen LIBOR Submitter 

After Rabobanlc centralized its LIBOR submission process in Utrecht in January 2009, 

several Rabobanlc traders had responsibility for making Yen LIBOR submissions. Each ofthe 

Yen LIB OR submitters knew of the entrenched practice of receiving, acknowledging and 

following requests for beneficial rates from Rabobanlc traders in making Rabobanlc' s Yen 

LIB OR submissions. As each trader assumed the role of Yen LIBOR submitter, their 

predecessors instructed them to take into account and submit as Rabobank's Yen LIBOR 

submissions the rates provided by the Yen traders; if the traders failed to provide their 

submission preferences, the submitters were instructed to submit the prior day's submissions. 

24 
The newly promoted senior manager and supervisor of the cash and derivatives traders, Senior 

Manager 2, confirmed those instructions to at least one submitter. 

The Yen LIB OR submitters knew that the traders in Asia were frequently requesting Yen 

LIBOR submissions based on their trading positions, and knew that submitting rates to benefit 

the traders' cash and/or derivatives trading positions was inappropriate. Regardless, they 

continued to routinely make Yen LIBOR submissions using the traders' skewed rates. In 

addition, at least one of the Yen LIB OR submitters ("Yen Trader-Submitter 2") at times skewed 

his Yen LIBOR submissions to benefit his own trading book. 

By early February 2009, the Senior Yen Trader began sending daily the rates for the Yen 

LIBOR submissions, usually for the one through six month tenors, rather than just for the one, 

three and six months as he had previously done. The submitters copied his rates into their Yen 

LIBOR submissions. The Senior Yen Trader in effect became the Yen LIBOR submitter for 

Rabobank. The submitters became so dependent on the rates from the Senior Yen Trader for 

their submissions that they regularly solicited rates from the Senior Yen Trader. On days the 

Senior Yen Trader did not send requests or the submitters did not reach him, the submitters 

continued the practice of submitting the rates the Senior Yen Trader provided on the previous 

day. 

The Senior Yen Trader frequently accounted for his own cash and derivatives positions, 

and the trading positions of his colleagues, including his desk manager, Yen Desk Manager 2, 

when determining the daily submissions for Rabobank's Yen LIBOR. By submitting the rates 

provided by the Senior Yen Trader, the Yen LIBOR submitters as a result made Rabobank's Yen 

LIBOR submissions based on the benefit to the cash and derivatives trading positions of the 

Senior Yen Trader and his colleagues, and not based on the costs of borrowing funds in the 

London Yen cash market. If the submitters failed to input the rates the Senior Yen Trader sent, 

he aggressively berated the submitters. In response, the submitters quickly apologized, noted 

their errors and subsequently assured the Senior Yen Trader that they would not deviate from his 

directives in the future. 

The following are examples of the improper rate requests from traders in Rabobank's 

Asia offices, the solicitation of requests by submitters, and the communications by the Senior 

Yen Trader when he became the de facto Yen LIBOR submitter. 

December 9, 2008: (emphasis added) 

Senior Manager 2 email to Yen Trader-Submitter 1 and Senior Manager 1: 

Hi [Yen Trader-Submitter 1], [Senior Manager 1], 

How are you? 

Good to hear that [Yen Trader-Submitter 3] is up and running. 

Sh01i question: only question mark for me is him sending out the daily Rabo 

Libor fixings. 

He told me that he will just "copy, paste" the previous days Libors. Don't 

blame [Yen Trader-Submitter 3] of course, but he has got no clue on this yet. 

25 
What you think, is this going ok? Want to prevent that we get questions from 

BBA on this? 

[Senior Manager 2] 

Yen Trader-Submitter 1 reply to Senior Manager 2: 

Hi [Senior Manager 2] , 

I'm all fine , thanks . Yes [Yen Trader-Submitter 3] is doing fine , regarding 

the libors[ ... ] I generally use the libors from the day before so that there is 

no real debate from bba[ ... ]the yen libors sometimes [Senior Yen Trader] 

will email from Tokyo to ask for any special requests I have never had a 

problem so far regarding the libors ... so I think they (bba) seem to know where 

we set our libors in comparison to the others and as we are happy to lend at that 

level ( libor) to corporates its fine[ ... ] 

Cheers mate 

Regards [Yen Trader-Submitter 1] 

January 16, 2009: (emphasis added) 

Senior Yen Trader email to Yen Trader-Submitter 2 

Subject: RE: 3m LIBOR 

Hey mate 

Yesterday I asked you to put 3m yen lib or at 0. 73% but you actually put it at 

0.78% ... something happened? 

Today,, could you put 3m libor at 0.70% please? Is it ok? 

Yen Trader-Submitter 2 reply to Senior Yen Trader 

Subject: RE: 3m LIBOR 

Something must have went wrong with the feeds there, just testing the 

sheets here on our pes, after some probs with the migration to office 2007. 

Will put in 0.70% today for sure. 

Nice day 

[Yen Trader-Submitter 2] 

Yen Trader-Submitter 2 email to Senior Yen Trader later that same day: 

Subject: RE: 3m LIBOR 

Hi [Senior Yen Trader] San, 

Your 3 month fixing went in wrong, due to again error on error in our 

publishing sheets[ ... ] although I put ur 3m rate in at 0.70 two times it still was 

overwritten by someone in the end [ ... ] the publish activity was a big 

mess[ ... ] Sorry for hassle. 

[Yen Trader-Submitter 2] 

26 
Senior Yen Trader reply on January 19,2009 to Yen Trader-Submitter 2: 

Subject: RE: 3m LIBOR 

Hi [Yen Trader-Submitter 2] 

I hope you will succeed to put 3m LIBOR at 0.70% today ..... 

Regards 

[Senior Yen Trader] 

January 26, 2009: 

Senior Yen Trader email to Yen Trader-Submitter 2: 

Subject: libors 

Hi mate 

Could you set 

3m at 0.67% 

6m at 0.90% for today please? 

Regards 

[Senior Yen Trader] 

Yen Trader-Submitter 2 reply to Senior Yen Trader: 

Subject: RE: libors 

Will do cheers 

January 30, 2009: (emphasis added) 

Yen Trader-Submitter 2: 

Senior Yen Trader: 

Yen Trader-Submitter 2: 

Senior Yen Trader: 

Yen Trader-Submitter 2: 

February 25, 2009: 

tibor-libor is going more in ur favour. . .ifu still 

have postion 

i will have fixings on 12th feb for 200 bio. 

hope at least till them libor will keep going 

down 

any preferences in fixings today? 

2m at 0.63% 6m 0.82% pis 

will do 

Senior Yen Trader email to Yen Trader-Submitter 2: 

Subject: libors 

Hi mate 

Could you set libors for today as below please? 

1m 0.39 

2m 0.60 

3m 0.65 

4m 0.71 

5m 0.76 

6m 0.80 

Regards 

[Senior Yen Trader] 

27 
Yen Trader-Submitter 2 reply to Senior Yen Trader: 

Will do 

cheers 

March 9, 2009: (emphasis added) 

Senior Yen Trader email to Yen Trader-Submitter 2: 

Subject: Libors 

Hi 

Could you put the below numbers for todays libor please? 

1m 0.52 

2m 0.57 

3m 0.60 

4m 0.67 

5m 0.75 

6m 0.81 

Regards 

[Senior Yen Trader] 

Accompanying Bloomberg on the same date: 

Senior Yen Trader: hihi i sent libors for today ... hope they will be 

correctly fed in thorugh todya 

Yen Trader-Submitter 2: yes friday friday u didnt send me the libors 

Senior Yen Trader: uh,, understood ... i sent for to days one now 

mate 

Yen Trader-Submitter 2: 

Senior Yen Trader: 

May 25, 2009: (emphasis added) 

is no prob , u want me to send a reminder if 

by accident libros are not coming in here? 

thanks for a kind offfer ... if you can pop a msg 

up in here, it would be a help. but no need to 

send me a reminder email. thanks 

Yen Trader-Submitter 2 email to Yen Trader 1: 

Hi frds, 

Normally [Senior Yen Trader] San sends us his preferences for the JPY 

libors. 

If you have any let me know. 

Cheers 

Yen Trader 1 reply to Yen Trader-Submitter 2: 

We don't have any special requests for libors today. 

Many thanks, 

[Yen Trader 1] 

Yen Trader 1 follow up email to Yen Trader-Submitter 2 the next day: 

Good morning [Yen Trader-Submitter 2], 

About libors .. 

28 
Same as last Friday pis. if no particular int from others. 

We pay 0.04% in S/N(28-29th May) up to 70yards. 

Thanks, 

[Yen Trader 1] 

October 5, 2009: 

Senior Yen Trader email to Yen Trader-Submitter 2: 

Subject: libors 

Hi 

Could you put the below for todays libors please? 

SN 0.10% 

lw 0.13% 

2w 0.14% 

1m 0.16% 

2m 0.24% 

3m 0.32% 

4m 0.42% 

5m 0.48% 

6m 0.53% 

Regards 

[Senior Yen Trader] 

Yen Trader-Submitter 2 reply to Senior Yen Trader: 

Subject: RE: libors 

Is done cheers 

February 22,2010: (emphasis added) 

Yen Trader-Submitter 2: 

Senior Yen Trader: 

[ ... ] 

Senior Yen Trader: 

Yen Trader-Submitter 2: 

Yen Trader-Submitter 2: 

Senior Yen Trader: 

April19, 2010: 

same libors? 

yes pis mate 

if possible. pis but 6m libor at 0.42 pis? 

will do 

is adjusted cheers 

thank you 

Yen Trader 2 email to Yen Trader-Submitter 4: (translated from Dutch) 

[Yen Trader-Submitter 4] , 

Can maybe put the 6m JPY LIBOR up 1 bp. He says it will have no direct effect 

on LIBOR, but wants to see the psychological impact it has on "other accounts 

that the market continuously spoof," that is, [Panel Bank E] and [Panel Banlc C]. 

greetings, 

[Yen Trader 2] 

29 
August 4, 2010: 

Senior Yen Trader email to Yen Trader-Submitter 3: 

Subject: yen libors 

Hi 

Could you put libors like below today, please? 

s/n 0.10 

1 w 0.11 

2w 0.11 

1m 0.12 

2m 0.16 

3m 0.21 

4m 0.30 

5m 0.35 

6m 0.40 

Thank you 

Yen Trader-Submitter 3 reply to Senior Yen Trader: 

Subject: Re: yen libors 

Hi [Senior Yen Trader]-san, 

Will do sir! 

Cheers 

September 28, 2010: 

Senior Yen Trader email to Yen Trader-Submitter 3 and Yen Trader-Submitter 4: 

Subject: libor for yen 

Hi 

Can you put 0.19% for 3mth and 0.39% for 6mth yen libor pls? 

Regards 

[Senior Yen Trader] 

Yen Trader-Submitter 3 reply to Senior Yen Trader and Yen Trader-Submitter 4: 

Subject: RE: libor for yen 

Hi [Senior Yen Trader], 

That's done 

Cheers 

October 6, 2010: (emphasis added) 

Senior Yen Trader email to Yen Trader-Submitter 3 and Yen Trader-Submitter 4: 

Subject: yen llibors 

Hi 

Can you change yen libors as belwo? 

1m 0.11 

2m 0.14 

3m 0.18 

4m 0.27 

30 
5m 0.33 

6m 0.38 

Thank you 

[Senior Yen Trader] 

Senior Yen Trader follow-up email to Yen Trader-Submitter 3 and Yen TraderSubmitter 4: 

Subject: RE: yen llibors 

Hi 

It seems that our libors didn't change. 

Can you change libors down to the below please? 

Regards 

[Senior Yen Trader] 

October 18, 2010: (emphasis added) 

Senior Yen Trader email to Yen Trader-Submitter 3: 

Subject: question 

WHY DID YOU PUT ALL THE YEN LIBORS HIGHER FOR TODAY 

WITHOUT TELLING ME? 

WHERE IS THE TEAM PLAY? 

YOU KNOW MY POSITION IS? I CANT BELIEVE YOU DID THIS 

WITHOUT TELLING ME. 

IF YOU HAD TO PUT THEM HIGHER FOR SOME REASON BUT AT 

LEAST YOU COULD HAVE TOLD 

ME IN BEFORE HAND. 

IM REALLY FUKKED. 

[Senior Yen Trader] 

Senior Yen Trader Bloomberg chat with Yen Trader-Submitter 3 later the same 

day: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

hey mate why did you put libors all higher? 

Hi made I just saw your email and replied .. I 

fuld(ed up .. you gave [Yen Trader-Submitter 4] 

new libors last week .. didn't save the sheet and 

today I used my own computer for libors .. I 

fulllied up, my mistake .. not on perpose mate 

... I am really sorry ... And I would never 

change libors without consulting you. 

i got so surprised when i saw rabos nubmer. 

you know my position then put libors higher. 

I understand, 

some ppl react in this way so i worried as well if 

you were this kind of a guy hope this rabo 

move doesnt affect to other banks LIBOR 

numbers for tomorrwo onward 

31 
Yen Trader-Submitter 3: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

October 20, 2010: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

Yen Trader-Submitter 3: 

Senior Yen Trader: 

I hope so 2. I have put them now back to 

following levels: lm 0.11 2m 0.13 3m 0.17 4m 

0.26 5m 0.32 6m 0.37. Will not change them 

without you telling me to do. 

of course you can change libor numbers, mate. 

what i would like to have is .... comunication. as 

long as you tell me that you would like libors 

higher or lower for some reason then i will do 

what i can and most of the case i think it would 

be a no problem. 

Mate, ... You understand that this an personal 

error from me? ... And did not intentionnally put 

them higher? 

totall understand... sorry that my email 

sounded so harsh. 

No problem mate, I fuld(ed up so I understand. 

Lets just hope that , like you said, others 

banks will not be influenced tom. Hope trust 

is still there between us. Will be carefull next 

time 

yes still there mate .. i just felt that i was used .. 

yep trust is there. thank you and sorry. u owe 

me a nice beer ! 

1 beer? More like 564 beers! ... Lat time: I will 

never use you, I respevt you, you, we are on the 

same team. Thats how I see it! ... Nice eve mate! 

i respect your eagar, too. mate cheers talk to 

you tmr 

... your tibor/libor exposure is more in 6m than 

in 3's fmg? 

50%-50% mate 

I see .. nice .. so whats the reason that you dont 

put down Rabo JPY libor numbers? just one tick 

to see what happens? Or is that sort of 

manipulation and not done? or am I saying 

something stupid now? 

Rabo JPY LIBOR numbers are already one of 

the lowest four banks among 16 panel banks so 

even if we put them lower fmiher, it wouldnt 

give any change on yen libors ... and i think just 

keep libors one of the lowest four banks is the 

good idea because it isn't obvious so that ppl 

wouldnt notice. if it is too obvious, ppl could 

start looking at us manipulating libors 

32 
November 26, 2010: 

Senior Yen Trader: 

Yen Trader-Submitter 4: 

Yen Trader-Submitter 3: 

COULD YOU PUT 6m libor lower to 0.34 pls? 

we will do ... 

Yes mate will put 6m libor to 0.34 

11. The Senior Yen Trader's Coordination with Brokers 

Despite awareness of an investigation related to LIB OR, the Senior Yen Trader continued 

to attempt to manipulate Yen LIB OR; however, he switched to using a broker to facilitate his 

effmis to manipulate. 15 On November 30, 2010, in the midst ofthe Commission's investigation 

ofRabobank's U.S. Dollar LIBOR submission practices, Senior Manager 2 instructed the Yen 

LIBOR submitters at that time, Yen Trader-Submitter 3 and Yen Trader-Submitter 4, that it was 

improper to consider rate requests from traders when making Rabobank's LIBOR submissions 

and that the practice should stop. That same day, when the Senior Yen Trader sent the daily Yen 

LIB OR rates to be submitted, the Yen LIB OR submitters refused to assist him. Reacting to the 

loss of his ability to influence the Yen LIB OR fixings directly, the very next day the Senior Yen 

Trader contacted a London-based broker at ICAP Europe Limited ("ICAP Cash Broker") and 

requested his assistance in manipulating Yen LIB OR for certain tenors to benefit the Senior Yen 

Trader's trading positions. 16 The Senior Yen Trader continued to request the ICAP Cash 

Broker's assistance in his manipulative attempts throughout the end of2010 and into early 

2011. 17 The Senior Yen Trader admitted to the ICAP Cash Broker that he previously acted as 

Rabobank's Yen LIBOR submitter and "influence[d]" the LIBOR submissions until 

November 30,2010. The following are examples ofthe Senior Yen Trader's requests to the 

ICAP Cash Broker and the broker's willingness to assist him in his eff01is to manipulate Yen 

LIB OR. 

15 Clients of brokers, including LIBOR submitters and derivatives traders at panel banks, rely on 

brokers for views and advice on market pricing and trends; this type of information is often used by 

submitters in their determination ofLIBOR submissions. Because brokers speak to multiple clients at 

numerous institutions, including LIBOR submitters, brokers are well-positioned to exert influence over 

Yen LIBOR submissions. 

16 On September 25, 2013, the Commission issued an Order Instituting Proceedings Pursuant to 

Sections 6( c) and 6( d) of the Commodity Exchange Act Making Findings and Imposing Remedial 

Sanctions against ICAP Europe Limited ("ICAP"), finding, among other things, that ICAP, through its 

Yen brokers, attempted to influence Yen LIB OR submissions for the purposes of manipulating Yen 

LIBOR on behalf of Yen derivatives traders in the market ("ICAP Order"). In the ICAP Order, Rabobank 

is identified as Bank D and the Rabobank Yen derivatives trader referenced is identified as Bank D Yen 

Trader. See http://www.cftc.gov/PressRoom/PressReleases/pr6708-13, pp. 36-37. 

17 On at least two occasions, the Senior Yen Trader also communicated with another broker at 

Brokerage A ("Derivatives Broker A2") and sought his assistance in influencing Yen LIBOR fixings. On 

one of these occasions, January 19, 2011, the Senior Yen Trader requested Derivatives Broker A2 to 

assist him in pushing the six-month tenor of the Yen LIB OR fixing in a favorable direction to benefit the 

Senior Yen Trader's trading position. 

33 
December 1, 2010: (emphasis added) 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

December 14, 2010: (emphasis added) 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Later on the same day: 

ICAP Cash Broker: 

Hope this will push libors down 

ok we need lower libors tomorrow yes? 

Yeah ... 

ok ill work some magic for tomorrow:-) 

I want 3. And 6m libor a lot lower... ? How? 

we wait and see, tomorrow lower friday a 

little bit more but ill do my best 

Yeah ... I think yen libors shud be lower but ppl 

tend to keep them higher whereas usd libors ppl 

looks like manipulately put them higher 

ill work some magic tomorrow hopefully, 3m 19 

6m 35 

Mate ... 3mth is already below 19 

mistype 18 

That will be nice. 

ok i am on the case for u 

Thankumate 

libors are going up? Everything very high now 

j apanses in ldn bidding up cash so libors might 

go up, but ifu need lower give me the nod 

6mth libor going up is fine but I would lil{e 

3mth to be stayed or lower. Hahah this is my 

hope but miracle shouldn't happen 

ok [Senior Yen Trader] leave with me, ill do 

my best 

Unfmiunately the 3m libor went up today with 

[Panel Banlc F] and yourself putting up 1 point. 

Do you set the libors for your banlc? Re the 6m 

they also went up as [Panel Banlc G] has joined 

the libor fixing instead of [Panel Bank H] and 

over last 2 days they have set there libors more 

around the actual fixing everyday where as 

[Panel Banlc H] were far more arbi driven and 

tended to set lower. If 6m libor does creep up 

slowly we might get a jump in it when the 

Japanese move there libor up if and when the 

fixing goes above 3575, although Japanese 

banlcs can still get funds in market at 19 or 

lower so lib or still not true reflection of market 

rates. The Japanese tend to like to set libors 

around the current libor rate rather than market 

34 
Senior Yen Trader: 

ICAP Cash Broker: 

December 21, 2010: 

Senior Yen Trader: 

ICAP Cash Broker: 

December 22, 2010: (emphasis added) 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

January 6, 2011: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

January 27, 2011: (emphasis added) 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

Senior Yen Trader: 

rate where they can get large amounts of funds. 

Ill do the best for libors. 

Till two weeks ago I was seting libors for 

rabo but due to BBA investigation someone 

out side of europe shudnt have any influence 

of libors then I cudnt be involed in libors 

after then 

So does [Senior Yen Trader-Submitter] at 

rabo Utrecht/ london set them? Ill check who 

sets them at [Panel Bank G] for you. No 

worries ill catch you tomorrow. 

i now wud like 6m libor to go up a lot 

ok tomorrow i move 

3m .1875 6m 349 :-) 

thx mate so 6m libor highr finally? ... 

. . . yes ... i amworking my magic 

thank you! ... 

sorry [Senior Yen Trader], people slow to 

change but i am still working on it regarding 

libors 

Thx try 

what do u think about libors today? 

pretty much unchanged today, guys not sure 

which way to go ... but 3m same 6m higher u 

looking 

yep i love 6mth higher 

OK;-) 

morning [Senior Yen Trader] libors looking 

unchanged 3m but starnge to see 6m move 

down Are you looking for anything special 

this morning? 

im now happy that any libors to come down 

especially 3m and 6m ... 

ok . they wouldn't move up even with some 

guys biding 3m yen at 12 and 11 lvls so ill 

work on lower 3 and 6m then 

cheers! 

35 
February 24, 2011: 

ICAP Cash Broker: 

Senior Yen Trader: 

ICAP Cash Broker: 

morning [Senior Yen Trader] you looking for 

higher libors? 3m going 191 and 6m 348. nj 

guys looking for offers and Japanese have 

moved the lending interest higher in 3 and 6m 

not higher libors at mom ... but ok 

ok understood 

6. Rabobank Made False Reports and Attempted to Manipulate Sterling 

LIBOR to Benefit Rabobank Trading Positions 

For over a year, from at least late 2007 through early 2009, Rabobank's Sterling LIBOR 

submitters on occasion took their Sterling LIBOR-based trading positions into account when 

making Rabobank's Sterling LIBOR submissions in order to benefit those positions. 

Rabobank's Sterling LIBOR submissions were made out of its London office by a Sterling cash 

and derivatives trader ("Senior Sterling Trader-Submitter 1 "). Other Sterling traders who 

primarily transacted in derivatives tied to Sterling acted as back-up Sterling LIBOR submitters 

("Senior Sterling Trader-Submitter 2" and "Sterling Trader-Submitter 3"), including the head of 

the Sterling trading desk ("Sterling Desk Manager"). The primary submitter, the back-up 

submitters and their supervisor, the Sterling Desk Manager, were all in constant communication 

with one another. 

Senior Sterling Trader-Submitter 1 considered her own trading positions, and, if she was 

not submitting on a particular day, she, on occasion, sent requests to her back-up submitters or 

her manager for submissions that benefitted her own Sterling LIBOR-based derivatives trading 

positions. The back-up Sterling Trader-Submitters and the Sterling Desk Manager 

accommodated her requests, and as a result, Rabobank's Sterling LIBOR submissions on 

occasion were submitted in a manner which would be beneficial to its trading positions. Thus, 

the Sterling LIBOR Submitters' Sterling LIBOR submissions reflected their financial interests, 

rather than the costs of borrowing Sterling in the London interbank market. The following are 

examples of some of these occasions: 

November 30,2007: 

Email from Senior Sterling Trader-Submitter 1 to Sterling Desk Manager: 

Subject: Libors 

Need high 3s wnd low 1s 

Reply from Sterling Desk Manager to Senior Sterling Trader-Submitter 1: 

Subject: RE: Libors 

Okok 

Email from Senior Sterling Trader-Submitter 1 to Sterling Desk Manager: 

Subject: Re: Libors 

See [Sterling Trader-Submitter 3] has to put up with my nagging usually ..... He is 

worth his weight in gold 

haha??? 

36 
August 1, 2008: 

Sterling Trader-Submitter 3 email to Senior Sterling Trader-Submitter 1: 

Subject: Low 1 'sand 3's next week pls 

Your risk 160,000 gbp .... 205,000 euro's, so minus 40,000 gives you 165,000 

euro's .... 

Have a good w/e ... 

See you tue week 

October 2, 2008: (emphasis added) 

Senior Sterling Trader-Submitter 1 email to Sterling Trader-Submitter 3 and 

Sterling Desk Manager: 

Subject: Risk 

I have a 6 mos FRA maturing tom .. so I need high 6m lib or .. . 

When this matures tomorrow I will probably be just inside limit ... can you check 

in the afternoon please and I can sell some dec futs .. .I will call tomorrow. 

Thanks 

[Senior Sterling Trader-Submitter 1] 

Oh and apologies for any wrong trades ..... It was a nitemare day!!! 

December 2, 2008: 

Senior Sterling Trader-Submitter 1 email to Sterling Desk Manager and Senior 

Sterling Trader-Submitter 2: 

Subject: Libors 

Need high 1s and 6s please ..... 

Speak later 

January 9, 2009: (emphasis added) 

Senior Sterling Trader-Submitter 1 email to Sterling Desk Manager: 

Subject: Libors 

Need low lm and 3m today pis 

Reply from Sterling Desk Manager to Senior Sterling Trader-Submitter 1: 

Subject: RE: Libors 

Don't we all !!think gonna go 38 in 3's 

37 
February 12, 2009: (emphasis added) 

Senior Sterling Trader-Submitter 1 email to Sterling Desk Manager and Senior 

Sterling Trader-Submitter 2: 

Subject: Libors 

I reckon you could go as high as 2.10 in 3 mos and still be in!! 

Also can you set 1m libot at 1.40 please?? 

******* 

As described above, Rabobank made repeated attempts to manipulate LIBOR for U.S. 

Dollar, Yen and, on occasion, Sterling, in order to affect the official fixing ofLIBOR in a 

manner that would benefit its cash and derivatives trading positions. Rabobank, through its 

derivatives traders and submitters, knew it was improper to consider derivatives trading positions 

in determining the bank's LIBOR submissions. A panel bank's financial derivatives trading 

positions are not legitimate or permissible factors on which to base a bank's daily LIB OR 

submissions. By basing its LIBOR submissions on rates that benefited traders' cash and 

derivatives trading positions, Rabobank's submissions were not made in accordance with the 

BBA definition and criteria for LIBOR submissions. Instead, certain Rabobank submitters 

knowingly conveyed false, misleading or knowingly inaccurate reports that its submitted rates 

for LIBOR for U.S. Dollar, Yen and Sterling were based on and solely reflected its assessment of 

the costs of borrowing unsecured funds in the relevant interbank~ money markets. Accordingly, 

Rabobank regularly attempted to manipulate the official LIBOR fixings for U.S. Dollar, Yen and 

Sterling in particular tenors, and knowingly delivered false, misleading or knowingly inaccurate 

repmis concerning LIBOR for U.S. Dollar, Yen and Sterling, commodities in interstate 

commerce. 

7. Rabobank Made False Reports and Attempted to Manipulate Euribor to 

Benefit Rabobank Trading Positions 

For at least three years, spanning from January 2006 through 2008, Rabobank, through its 

submitters and traders, attempted to manipulate Euribor and frequently made submissions in 

furtherance of those attempts. Rabobank, a Euribor panel banlc member sinGe January 1998, 

assigned its Euribor submission process to a cash and derivatives trader in its Utrecht office 

("Senior Euribor Trader-Submitter"). Based on instructions received from a senior manager, the 

Senior Euribor Trader-Submitter generally contributed Euribor submissions at levels intended to 

be close to the expected Euribor fixings. 18 To accomplish this, the Senior Euribor TraderSubmitter reviewed data published each day by a broker that contained indications on where 

18 During this period, Rabobank did not significantly lend or borrow in the Euro market and held a good 

credit standing relative to the other banks on the EBF's Euribor panel. However, the Euro desk's 

methodology of making submissions to be near the fixings or in the middle of the pack of submitting 

banks was not consistent with the EBF' s definition of and guidance concerning Euribor. 

38 
Euribor was expected to fix each day, and used this information to make submissions that 

ensured Rabobank would be in the middle of the pack of the submitting panel banks. 19 

Rabobank's Senior Euribor Trader-Submitter was on a trading desk with other Euro cash 

and derivatives traders. The trading desk had consolidated profit and loss targets ("P&L"), and 

the environment encouraged open communication between the Senior Euribor Trader-Submitter 

and derivatives traders that transacted in products tied to Euribor. As a result, traders orally and 

in writing communicated requests for preferential Euribor submissions that could benefit their 

trading positions. 

The Senior Em·ibor Trader-Submitter regularly considered traders' requests and her own 

trading positions when determining Rabobank's Euribor submissions. Thus, the Senior Euribor 

Trader-Submitter's Euribor submissions reflected her and other traders' financial interests, rather 

than the costs of borrowing Euro in the relevant interbank market. Additionally, at times, the 

Senior Euribor Trader-Submitter aided two former Rabobank employees at a non-panel bank in 

their attempts to manipulate Euribor by accommodating their requests to skew Rabobank's 

Euribor submissions in favor of their trading positions. 20 

a. Rabobank Accommodated Requests from Former Derivatives Traders to 

Submit Euribor Rates Skewed to Benefit Trading Positions 

Statiing at least as early as January 2006 and continuing through at least 2007, the Senior 

Euribor Trader-Submitter received requests to skew Rabobank's Euribor submissions from two 

former Rabobank senior Euro derivatives traders working at another bank not on the Euribor 

panel. These traders, External Euro Trader 1 and External Euro Trader 2, previously worked in 

Rabobank's Utrecht office, where they developed relationships with the Senior Euribor TraderSubmitter. 

On several occasions, External Euro Trader 1 and External Euro Trader 2 transmitted to 

the Senior Euribor Trader-Submitter requests to submit Euribor higher or lower with the purpose 

of affecting the official Euribor fixing. They communicated these requests orally and through 

electronic communications. They often targeted key tenors, such as the three and six month 

tenors, when making their requests. At times, they explicitly advised the Senior Euribor TraderSubmitter which of their positions would gain or suffer depending on the fixings. 

19 As found in the ICAP Order, during the relevant period herein, cetiain brokers provided traders and 

submitters at panel banks with predictions or suggestions of where the brokers believed key benchmark 

interest rates, such as Euribor or LIBOR, would fix on specific days. See ICAP Order, pp. 6-8. 

20 The Senior Euribor Trader-Submitter's aiding and abetting the manipulative acts of the former 

Rabobank traders is not the same collusive conduct among various panel banks as the Commission found 

in its Order against Bm·clays Bank PLC or Bm·clays Capital Inc. See Order Instituting Proceedings 

Pursuant to Sections 6(c) and 6(d) of the Commodity Exchange Act Making Findings and Imposing 

Remedial Sanctions against Barclays PLC, Bm·clays Bank PLC and Bm·clays Capital Inc., 

http://www.cftc.gov/PressRoom/PressReleases/pr6289-12, pp. 15-18. 

39 
The Senior Euribor Trader-Submitter understood that both of her former colleagues 

worked together at the other non-panel banlc, and that requests from either were attempts to 

manipulate certain EBF Euribor fixings to suit both of their trading positions. Upon receivinf 

their requests, the Senior Euribor Trader-Submitter often accommodated them and, at times,2 

adjusted her Euribor submissions by one basis point in a direction compatible with the requests. 

On certain days when fixings trended higher but External Euro Trader 1 or External Euro Trader 

2 requested a low submission, the Senior Euribor Trader-Submitter accommodated the request 

by simply submitting the same rate as the day before. 

The following communications are examples of requests from External Euro Trader 1 

and External Euro Trader 2 and indications of accommodation by the Senior Euribor TraderSubmitter: 

January 13, 2006: (translated from French) 

External Euro Trader 1: where do you see the 3m fixing?? 

Senior Euribor Trader-Submitter: wherever you want me to put it :-D 

External Euro Trader 1: lower then 2.50 that would be super! 

Senior Euribor Trader-Submitter: it will be a little bit lower between 50 and 51 I 

believe but rather 51 but I put it at 50 lower my 

quote gets me kicked out 

External Euro Trader 1: nice thank you very much ; -) 

June 14, 2006: (translated from French) 

External Euro Trader 1: for today I would like a really low one month 

fix and the 3 and the 6 really high ..... 

-----------4--".] 

Senior Euribor Trader-Submitter: do you have fixings?? 

External Euro Trader 1: yes 

Senior Euribor Trader-Submitter: what do you want 

External Euro Trader 1: low the 1m and high the 3 and the 6 please 

Senior Euribor Trader-Submitter: 2.86 2.97 and 3.12 I'm going to get myself 

kicked out but okay 

July 27, 2006: (translated from French) 

External Euro Trader 1: can the lm fixing not be expensive madame 

cad burry? 

Senior Euribor Trader-Submitter: hahah sure 

External Euro Trader 1: thanlc you 

August 1, 2006: (translated from French) 

Senior Euribor Trader-Submitter: do you have some fixings 

External Euro Trader 2: little fixing for 3m receiving 

Senior Euribor Trader-Submitter: you want high fixing is that right?? 

21 The Senior Euribor Trader-Submitter did not accommodate the requests if the accommodation would 

have caused Rabobank to fall out of the middle of the pack of submitting banks or be too far from the 

anticipated Euribor fix. 

40 
External Euro Trader 2: yes if you can thank you 

Senior Euribor Trader-Submitter: [Okay] 

September 4, 2006: (translated from French) 

External Euro Trader 1: I need another 3m fixing at the ceiling! 

Senior Euribor Trader-Submitter: hahahaha OK [External Euro Trader 1] 

October 4, 2006: (translated from French) 

External Euro Trader 1: can the 1m fix be expensive madame cadburry? 

Senior Euribor Trader-Submitter: absolutely sir. .. 

January 25, 2007: (translated from French) 

External Euro Trader 1: little request for the morning can you put the lm 

fix expensive? 

Senior Euribor Trader-Submitter:;-) euro or gbp?? 

External Euro Trader 1: euro 

;-) 

Senior Euribor Trader-Submitter: good no prob 

b. Rabobank Accommodated Requests from its Traders to Manipulate Euribor 

The Rabobank traders regularly communicated orally with the Senior Euribor TraderSubmitter concerning market activity and the direction of key interest rates, allowing the Senior 

Euribor Trader-Submitter to develop a general understanding of the trading positions taken by 

the Euro derivatives trading desk and, thus, their exposure to Euribor fixings for particular 

tenors. 22 For example, the senior manager of the submitter who sat next to her in 2007, Senior 

Manager 2, merely had to mention how his trading positions were exposed to Euribor, and the 

Senior Euribor Trader-Submitter knew what submission to make to benefit his position. 

In mid-2007, the broker that the Senior Euribor Trader-Submitter relied upon to 

dete1mine the expected Euribor fixings ceased publishing the data. Around the same time, many 

Rabobank Euro derivatives traders started having difficulty hedging their positions because 

market liquidity was decreasing with the beginning of the financial crisis. The Senior Euribor 

Trader-Submitter began receiving requests from the Euro derivatives traders for specific Euribor 

submissions which were beneficial to their trading positions, pmiicularly when the desk had 

large Euribor-based positions that it could not hedge. The traders and submitter discussed the 

requests openly across the desk, as well as in emails and Bloomberg chats. The Senior Euribor 

Trader-Submitter also developed a practice of asking members of the Euro Desk if the desk had 

any requests related to Euribor before she made her day's submissions. From approximately 

mid-2007 through late 2008, the traders made requests with a frequency of two to three times per 

week. 

22 For example, the Senior Euribor Trader-Submitter knew that the traders always had an interest in a 

high six-month Euribor fixing. 

41 
The Senior Euribor Trader-Submitter took the traders' requests into account in 

determining Rabobank's Em·ibor submissions. At one point, the Senior Euribor TraderSubmitter commented to Rabobank's U.S. Dollar Trader-Submitter 1 in a November 15,2007 

Bloomberg instant message exchange: "I DO THE FIXING I ASK SWAP DESK WHAT THEY 

HAVE.',n 

By mid-2008, the Senior Euribor Trader-Submitter started trading Euribor-based 

derivatives and began factoring in her own positions into her determination of Rabobank' s 

Euribor submissions. At times during this period, the Senior Euribor Trader-Submitter had to 

balance requests made by other derivatives traders with her own trading positions, and, in doing 

so, skewed Rabobank's Euribor submissions in order to best benefit the Euro trading desk's 

consolidated P&L. She altered the applicable Euribor rates to the extent that it would not cause 

Rabobank's submissions to be outside the middle range of the panel banks' submissions, as she 

was instructed to do. 

The following examples demonstrate the regular communications sent by Rabobank 

traders requesting preferential Euribor submissions and the Senior Em·ibor Trader-Submitter's 

willingness to accommodate the requests: 

July 12,2007: 

Euro Desk Manager email to Euro Trader-Submitter 1 : 

Subject: fixings 

Hi [Euro Trader-Submitter 1], 

Only when it doesn't affect you in a negative way: today we'd like to see the 6M 

fixing as high as possible and the 3M fixing as low as possible ... many thanks! 

Euro Trader-Submitter 1 reply to Euro Desk Manager: 

Subject: RE: fixings 

Consider it done. 

Cheers 

March 27,2008: (emphasis added) 

Senior Euribor Trader-Submitter: WHUPPY SMURF GOOD MORNING 

SAME FIXINGS? 

Euro Trader 1: yes pis, certainly low 3m and if possible high 

lm, but i believe [Senior Manager 2] 

wouldn't agree with that:) ty! 

23 U.S. Dollar Trader-Submitter 1 returned the sentiment in this exchange, admitting that, " ... the am bass 

had big fixing so we help him today .. " 

42 
Senior Euribor Trader-Submitter: AlE AlE WE HAVE CONFLICT OF 

INTEREST HERE BETWEEN THE 

OVERKANT EN DEZE KANT24 ... 

INCIDENT DIPLOMATIQUE!!!! 

Euro Trader 1: i propose an entente amicale25 .. 

Senior Euribor Trader-Submitter: OK I SEND THE AMBASSADOR BACK ..... 

1S WILL BE 38 ANYWAY BUT I PUT THE 

3S TO 4.72 

April3, 2008: 

Senior Euribor Trader-Submitter: SALUT FIXES ?? 

Euro Trader 1: fairly small, just low 3s pls .. merci! 

Senior Euribor Trader-Submitter: OK AM OFF TILL 14TH [Euro TraderSubmitter 1] WILL TAKE CARE OF THIS ... 

AprillS, 2008: (emphasis added) 

Senior Euribor Trader-Submitter: SALUT FIXES?? LOW 3S AND HIGH 6S 

?? 

Euro Trader 1: bonjour mademoiselle, just low 3s pis, others 

very small. ty! 

Senior Euribor Trader-Submitter: BON 

April22, 2008: (emphasis added) 

Senior Euribor Trader-Submitter: HELLO LET'S CHEAT ON THE FIXES ?? 

Euro Trader 1: 

May 7, 2008: 

morning! only biggie is really low 3s. much 

appreciated, as usual:) 

Senior Euribor Trader-Submitter: HIY A FIXES ?? 

Euro Trader 1: just low 3s pls, the rest very small. merci! 

Senior Euribor Trader-Submitter: BON 

May 8, 2008: (emphasis added) 

Senior Euribor Trader-Submitter: LET ME GUESS LOW 3S REST IS SMALL 

?? 

Euro Trader 1: yes indeed, merci beaucoup! 

Senior Euribor Trader-Submitter: HAHHA EXPECTED BIT LOWER I'D SAY 

24 As translated from Dutch this phrase means: "other side and this side." 

25 As translated from French this phrase means: "friendly agreement." 

43 
May 28, 2008: (partially translated from Dutch) 

Senior Euribor Trader-Submitter: FIXINGS ?? 

Euro Trader 1: voila, a nice one again:) low 3s and high 1 and 

6s pls! [friendly thanks] .. 

Senior Euribor Trader-Submitter: [TOMORROW'S] 1S FIXING WILL BE 

VERY HIGH 

June 3, 2008: 

Senior Euribor Trader-Submitter: SALUT FIXES PLEASE ?? 

Euro Trader 1: ok, hold on tight; high 3s and 6s pls!! 

Senior Euribor Trader-Submitter: HIGH >?? U SURE ?? 

Euro Trader 1: yes indeed only 3s not soo big and prob 

tomorrow low again so maybe dont spoil the 

pattern too much? thanks either way:) 

Senior Euribor Trader-Submitter: OK [Euro Trader 1] 

July 15, 2008: 

Senior Euribor Trader-Submitter: ... FIXINGS ?? 

Euro Trader 1: hello! high 3s and 6s pls .. thanks for asking me 

again:) 

August 28, 2008: (emphasis added) 

Senior Euribor Trader-Submitter: HI I AM GOING FOR HIGH 1 S TODAY 

WHAT DO YOU NEED IN 3S AND 6S 

PLEASE?? 

Euro Trader 1 : 

September 24, 2008: (emphasis added) 

low 3s high 6s pis! btw, whenever i say low 6s 

pis ignore me, we always need high 6s to keep 

the basis as wide as possible. thanks! 

Senior Euribor Trader-Submitter: hi high 3 and 6s 

Euro Trader 1: today low 1s and 3s, high 6s pls:-) merci! 

Senior Euribor Trader-Submitter: u got me confused here [Euro Trader 1] 

Euro Trader 1: always high 6s, and our fixings ls and 3s are 

large enoug today to want lower fixings there, 

ls and 3s do change daily, if e.g. 3m is small 

then we go for high 3s to support your high 

6s. bon? 

Senior Euribor Trader-Submitter: allons bon ...... a lesson in fixings ! ! ! ! 

September 26, 2008: (emphasis added) 

Senior Euribor Trader-Submitter: bon! HIGH 6S AND ? 

Euro Trader 1: morning! low 3s pis, pretty big. lm very 

small.muchos! 

Senior Euribor Trader-Submitter: HM I NEED HIGH 3S MYSELF 

44 
Euro Trader 1 : ok, we'll have to leave tha up to you. monday 

we need low 3s for very big, about 250k 

fixing delta! Thanks in advance 

Senior Euribor Trader-Submitter: OK I PUT IT AT 5.13 THAT IS 3 BP 

LOWER THAN EXPECTED BUT STILL 

HIGHER THAN YESTERDAY AND 

MONDAY WE ALL GO FOR 6 PVC 3S 

FIXING 

Rabobank's Euribor submitters knew it was improper to consider traders' cash and 

derivatives trading positions in determining the banlc's Euribor submissions. A panel banlc's 

financial derivatives trading positions are not legitimate or permissible factors on which to base a 

bank's daily Euribor submissions. By basing its Euribor submissions upon Rabobanlc's 

derivatives traders' requests or their own positions, and thereby on Rabobanlc's derivatives 

trading positions, Rabobanlc's Em·ibor submissions were not consistent with the EBF's 

definitions and criteria for Euribor submissions. Instead, Rabobank conveyed false, misleading 

or knowingly inaccurate reports that its submitted rates for Euribor were based on and solely 

reflected the costs of borrowing unsecured funds in the Euro money market. Accordingly, 

Rabobanlc regularly attempted to manipulate and knowingly delivered false, misleading or 

knowingly inaccurate reports concerning Euribor, a commodity in interstate commerce. 

IV. 

LEGAL DISCUSSION 

A. Rabobank Made False, Misleading or Knowingly Inaccurate Reports Concerning 

the Costs of Borrowing Unsecured Funds in Violation of Section 9(a)(2) of the Act 

Section 9(a)(2) of the Act makes it unlawful for any person "knowingly to deliver or 

cause to be delivered for transmission through the mails or interstate commerce by telegraph, 

telephone, wireless, or other means of communication false or misleading or knowingly 

inaccurate reports concerning crop or market information or conditions that affect or tend to 

affect the price of any commodity in interstate commerce .... " 7 U.S.C. § 13(a)(2) (2006); 

United States v. Brooks, 681 F.3d 678, 691 (5th Cir. 2012); United States v. Valencia, 394 F.3d 

352, 354-55 (5th Cir. 2004); see also CFTC v. Johnson, 408 F. Supp. 2d 259, 267 (S.D. Tex. 

2005). 

On a daily basis, Rabobanlc, through the transmission of an electronic spreadsheet to the 

service provider of the BBA and EBF, who calculates their official fixings (i.e., Thomson 

Reuters), knowingly delivered or caused to be delivered its U.S. Dollar, Yen and Sterling LIBOR 

and Euribor submissions through the mails or interstate commerce. Rabobank's submissions 

were also caused to be delivered through the mails or interstate commerce through the daily 

dissemination and publication globally, including into the United States, of the panel banks' 

submissions as well as the daily official benchmark interest rates by at least Thomson Reuters on 

behalf of the BBA and EBF, and other third party vendors. The panel banlcs' submissions are 

used to determine the official published rates for LIBOR and Euribor which are calculated based 

45 
on a trimmed average of the submissions. Rabobank's daily LIBOR and Em·ibor submissions 

contained market information concerning the costs of bono wing unsecured funds in particular 

currencies and tenors, the liquidity conditions and stress in the money markets, and Rabobank's 

ability to borrow funds in the particular markets. Such market information affects or tends to 

affect the prices of commodities in interstate commerce, including the daily rates at which U.S. 

Dollar, Yen and Sterling LIBOR and Euribor are fixed. 

At times, during the periods relevant to the conduct described herein, Rabobank's 

submissions for certain tenors of U.S. Dollar, Yen and Sterling LIBOR and Euribor were false, 

misleading or knowingly inaccurate because they were based in whole or in part on 

impermissible and illegitimate factors, specifically Rabobanlc traders' cash and derivatives 

trading positions. By using these impermissible and illegitimate factors in making its LIBOR 

and Euribor submissions, Rabobank conveyed false, misleading or knowingly inaccurate 

information that the rates it submitted were based on and related solely to the costs of borrowing 

unsecured funds in the relevant markets and were truthful and reliable. Moreover, Rabobank 

traders, submitters and managers, including at least one senior manager, knew that ce1iain 

Rabobank LIBOR and Euribor submissions contained false, misleading and knowingly 

inaccurate information concerning the submitted rates. By such conduct, Rabobank violated 

Section 9(a)(2) ofthe Act, 7 U.S.C. § 13(a)(2) (2006). 

B. Rabobank Manipulated Yen LIBOR at Times for Certain Tenors 

Together, Sections 6(c), 6(d) and 9(a)(2) of the Act prohibit acts of manipulation or 

attempted manipulation. Section 9(a)(2) of the Act makes it unlawful for "[a]ny person to 

manipulate or attempt to manipulate the price of any commodity in interstate commerce, or for 

future delivery on or subject to the rules of any registered entity .... " 7 U.S.C. § 13(a)(2) 

(2006). Section 6(c) of the Act authorizes the Commission to serve a complaint and provide for 

the imposition of, among other things, civil monetary penalties and cease and desist orders if the 

Commission "has reason to believe that any person ... is manipulating or attempting to 

manipulate or has manipulated or attempted to manipulate the market price of any commodity, in 

interstate commerce, or for future delivery on or subject to the rules of any registered entity, ... 

or otherwise is violating or has violated any of the provisions of [the] Act .... " 7 U.S.C. § 9 

(2006). Section 6(d) of the Act is substantially identical to Section 6(c). See 7 U.S.C. § 13b 

(2006). 

Manipulation under the Act is the "intentional exaction of a price determined by forces 

other than supply or demand." Frey v. CFTC, 931 F.2d 1171, 1175 (7th Cir. 1991). The 

following four elements must be met, by a preponderance of the evidence, to show a successful 

manipulation has occurred: 

(1) the [respondent] had the ability to influence market prices; 

(2) the [respondent] specifically intended to do so; 

(3) artificial prices existed; and 

( 4) the [respondent] caused an artificial price. 

46 
In re Cox, [1986-1987 Transfer Binder] Comm. Fut. L. Rep. (CCH) ~ 23,786, at 34,061 (CFTC 

July 15, 1987). The test for manipulation, however, is a practical one: 

We think the test of manipulation must largely be a practical one if the 

purposes of the Commodity Exchange Act are to be accomplished. The 

methods and techniques of manipulation are limited only by the ingenuity 

of man. The aim must be therefore to discover whether conduct has been 

intentionally engaged in which has resulted in a price which does not 

reflect basic forces of supply and demand. 

Cargill v. Hardin, 452 F.2d 1154, 1163 (8th Cir. 1971). 

"[I]ntent is the essence of manipulation." Indiana Farm Bureau Cooperative Ass 'n, Inc., 

[1982-1984 Transfer Binder] Comm. Fut. L. Rep (CCH) ~ 21,796, at 27,282 (CFTC Dec. 17, 

1982). The manipulator's intent separates "lawful business conduct from unlawful manipulative 

activity." !d. at 27,283. To prove the intent element of manipulation, it must be shown that 

Rabobank "acted (or failed to act) with the purpose or conscious object of causing or effecting a 

price or price trend in the market that did not reflect the legitimate forces of supply and demand." 

!d. 

The Commission has observed that "intent must of necessity be inferred from the 

objective facts and may, of course, be inferred by a person's actions and the totality of the 

circumstances." In re Hohenberg Bros., [1975-1977 Transfer Binder] Comm. Fut. L. Rep. 

(CCH) ~ 20,271, at 21,477 (CFTC Feb. 18, 1977). "[O)nce it is demonstrated that the alleged 

manipulator sought, by act or omission, to move the market away from the equilibrium or 

efficient price - the price which reflects market forces of supply and demand - the mental 

element of manipulation may be inferred." Indiana Farm Bureau Cooperative Ass 'n, Inc., 

~ 21,796, at 27,283. "It is enough to present evidence from which it may reasonably be inferred 

that the accused 'consciously desire[ d] that result, whatever the likelihood of that result 

happening from his conduct."' !d. (quoting United States v. United States Gypsum Co., 438 U.S. 

442, 445 (1978)). A profit motive may also be evidence of intent, although profit motive is not a 

necessary element of an attempted manipulation. See In re DiPlacido [2007-2009 Transfer 

Binder] Comm. Fut. L. Rep. (CCH) ~ 30,970, at 62,484 (CFTC Nov. 5, 2008) (citing In re 

Hohenberg Bros. Co., (CCH) ~ 20,271, at 21,478)), aff'd, 364 Fed. Appx. 657, (2d Cir. 2009). 

An artificial price (also termed a "dist01ied" price) is one "that does not reflect market or 

economic forces of supply and demand." In re Cox,~ 23,786, at 34,064; Indiana Farm Bureau 

Cooperative Ass 'n, Inc.,~ 21,796, at 27,288 n. 2. As the Commission noted with approval in 

DiPlacido, ~ 30,970, at 62,484 (quoting Indiana Farm Bureau Cooperative Ass 'n, Inc.,~ 21,796, 

at 27,300 (Commissioner Stone concurring)), a Commissioner has commented: "[t]his is more an 

axiom than a test." In determining whether an artificial price has occurred: 

[O]ne must look at the aggregate forces of supply and demand and search 

for those factors which are extraneous to the pricing system, are not a 

legitimate part of the economic pricing of the commodity, or are extrinsic 

to that commodity market. When the aggregate forces of supply and 

47 
demand bearing down on a pmiicular market are all legitimate, it follows 

that the price will not be artificial. On the other hand when a price is 

effected by a factor which is not legitimate, the resulting price is 

necessarily artificial. Thus, the focus should not be as much on the 

ultimate price as on the nature of the factors causing it. 

Indiana Farm Bureau Cooperative Ass 'n, Inc., 121,796, at 27,288 n.2. See also In re DiPlacido, 

1 30,970, at 62,484 (finding that the placement of uneconomic bids or offers results in artificial 

prices because those prices are not determined by the free forces of supply and demand on the 

exchange). 

Causation of artificial prices is established when it is demonstrated that miificial market 

prices resulted from the conduct of a trader, or group of traders acting in concert, rather than 

legitimate forces of supply and demand. See Cargill, Inc. v. Hardin, 452 F.2d 1154, 1171-72 

(8th Cir. 1971) (price squeeze "intentionally brought about and exploited by Cargill"); In re Cox, 

123,786, at 34,067 (proof of causation requires the Division to show that "the respondents' 

conduct 'resulted in' artificial prices"). 

There can be multiple causes of an artificial price. In re DiPlacido, 1 30,970, at 62,485. 

The manipulator's actions need not be the sole cause of the miificial price. "It is enough for 

purposes of a finding of manipulation in violation of Sections 6(b) and 9 of the Act that 

respondents' action contributed to the price [movement]." In re Kosuga, 19 A.D. 603, 624 

(1960); see also In re Cox, 123,786, at 34,066 (recognizing there can be multiple causes of an 

miificial price and holding that a charge of manipulation can be sustained where respondents' 

acts are a proximate cause of the artificial price). 

Here, as a member of the BBA's Yen LIBOR panel, Rabobank made daily submissions 

that purp01ied to reflect its assessments of the costs of borrowing unsecured funds in the London 

interbank market for Yen across tenors. The official LIB OR fixings are calculated using a 

trimmed average methodology applied to the rates submitted by the panel banks. By virtue of 

this methodology, Rabobank had the ability to influence or affect the rate that would become the 

official Yen LIB OR for any tenor. 

As evidenced by the extensive communications and other facts set forth above, in making 

the false Yen LIBOR submissions, several Rabobank traders and submitters specifically intended 

to affect the daily Yen LIBOR for certain tenors, including the one-month, three-month, and sixmonth tenors. Their intent is also made clear by the evidence that the derivatives traders and 

submitters' motives were to benefit Rabobanlc traders' derivatives and at times cash trading 

positions, or, at times, the derivatives trading positions of other panel banlcs with whom certain 

Rabobank derivatives traders colluded. 

On certain occasions, Rabobanlc's false, misleading or knowingly inaccurate Yen LIBOR 

submissions were illegitimate factors in the pricing ofthe daily Yen LIBOR fixings and affected 

the official Yen LIB OR for certain tenors, resulting in artificial Yen LIB OR fixings. Thus, 

Rabobank's actions were a proximate cause of the miificial Yen LIBOR fixings. 

48 
Accordingly, on certain occasions, Rabobank manipulated Yen LIBOR for ce1iain tenors, 

commodities in interstate commerce, in violation of Sections 6(c), 6(d) and 9(a)(2) ofthe Act, 

7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). 

C. Rabobank Attempted to Manipulate U.S. Dollar, Yen and Sterling LIBOR and 

Euribor 

To prove attempted manipulation, two elements are required: (1) an intent to affect the 

market price; and (2) an overt act in furtherance of that intent. See In re Hohenberg Bros. Co. 

~ 20,271, at 21,477; CFTC v. Bradley, 408 F. Supp. 2d 1214, 1220 (N.D. Okla. 2005). The 

intent standard is the same as that for manipulation. See Indiana Farm Bureau and Hohenberg 

Bros., supra. 

As found above, several Rabobank derivatives traders and submitters specifically 

intended to affect the rate at which the daily LIBOR for U.S. Dollar, Yen and Sterling, and the 

daily Euribor would be fixed to benefit Rabobank traders' derivatives trading and, at times, 

money market positions or to benefit the derivatives trading positions of colluding traders at 

other banks. The Rabobank derivatives traders' requests for beneficial LIBOR and Euribor 

submissions, and the Rabobank submitters making submissions based on those requests 

constitute overt acts in fmiherance of their intent to affect the fixings ofLIBOR for various 

currencies and the fixings of Euribor. By doing so, Rabobank engaged in repeated acts of 

attempted manipulation in violation of Sections 6(c), 6(d) and 9(a)(2) of the Act, 7 U.S.C. §§ 9, 

13b and 13(a)(2) (2006). 

D. Rabobank Aided and Abetted the Attempts of Traders at Other Banks to 

Manipulate Yen LIB OR and Euribor 

Pursuant to Section 13(a) of the Act, certain Rabobank submitters aided and abetted the 

attempts of traders at other banks to manipulate Yen LIB OR and Euribor in violation of the Act. 

7 U.S. C. § 13c(a) (2006). Liability as an aider and abettor requires proof that: (1) the Act was 

violated; (2) the aider and abettor had knowledge of the wrongdoing underlying the violation; 

and (3) the aider and abettor intentionally assisted the primary wrongdoer. See In re Nikkhah, 

[1999-2000 Transfer Binder] Comm. Fut. L. Rep. (CCH) ~ 28,129, at 49,888 n.28 (CFTC May 

12, 2000). Although actual knowledge of the primary wrongdoer's conduct is required, 

knowledge of the unlawfulness of such conduct need not be demonstrated. See In re 

Lincolnwood Commodities, Inc., [1982-1984 Transfer Binder] Comm. Fut. L. Rep. (CCH) ~ 

21,986, at 28,255 (CFTC Jan. 31, 1984). Knowing assistance can be inferred from the 

surrounding facts and circumstances. Id. 

As evidenced by the communications set fmih above, ce1iain Rabobank Yen LIBOR and 

Euribor submitters and submitters and derivatives traders at other panel banks coordinated about 

Yen LIB OR and Euribor submissions that would benefit their banks' respective cash and 

derivatives trading positions. At times, the traders at the other panel banks or brokers on behalf 

of traders at other banks asked Rabobank traders to submit a certain rate, or submit a rate in a 

direction higher or lower, that would benefit the cash and derivatives trading positions of the 

traders at the other panel banks. The Rabobank Yen LIB OR and Euribor submitters agreed and 

49 
submitted the requested preferential rates on various occasions. Accordingly, by seeking to 

affect the rates at which Yen LIB OR and Euribor were fixed, traders at the other banks attempted 

to manipulate Yen LIB OR and Euribor in violation of Sections 6( c), 6( d) and 9( a)(2) of the Act, 

7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). Certain Rabobank Yen LIBOR and Euribor submitters 

had knowledge of and intentionally assisted the attempts of the traders at the other banks to 

manipulate the rates at which LIBOR and Euribor were fixed. By such acts of those Rabobank 

Yen LIBOR and Euribor submitters, Rabobank aided and abetted the attempts oftraders at other 

banks to manipulate LIBOR and Euribor in violation of Sections 6(c), 6(d), and 9(a)(2) ofthe 

Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006). 

E. Rabobank Is Liable for the Acts of its Agents 

Section 2(a)(l)(B) ofthe Act, 7 U.S.C. § 2(a)(1)(B), and Regulation 1.2, 17 C.P.R. § 1.2 

(2012), provide that the act, omission or failure of any official, agent or other person acting for 

any individual, association, partnership, corporation or trust within the scope of his employment 

or office shall be deemed the act, omission or failure of such individual, association, partnership, 

corporation or trust. Pursuant to Section 2(a)(l)(B) of the CEA and Commission Regulation 1.2, 

strict liability is imposed on principals for the actions of their agents. See, e.g., Rosenthal & Co. 

v. CFTC, 802 F.2d 963, 966 (7th Cir. 1986); Dohmen-Ramirez & Wellington Advisory, Inc. v. 

CFTC, 837 F.2d 847, 857-58 (9th Cir. 1988). 

Rabobank is liable for the acts, omissions and failures of the traders, managers and 

submitters who acted as its employees and/or agents in the conduct described above and 

accordingly, violated Sections 6(c), 6(d) and 9(a)(2) ofthe Act, 7 U.S.C. §§ 9, 13b and 13(a)(2) 

(2006), as set forth above. 

v. 

FINDINGS OF VIOLATIONS 

Based on the foregoing, the Commission finds that Rabobank violated Sections 6(c), 6(d) 

and 9(a)(2) ofthe Act, 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). 

VI. 

OFFER OF SETTLEMENT 

Rabobank, without admitting or denying the findings or conclusions herein, except to the 

extent Rabobank admits those findings in any related action against Rabobank by, or any 

agreement with, the Depatiment of Justice or any other governmental agency or office, has 

submitted the Offer in which it: 

50 
A. Acknowledges receipt of service of this Order; 

B. Admits the jurisdiction of the Commission with respect to all matters set forth in this 

Order and for any action or proceeding brought or authorized by the Commission based 

on violation of or enforcement of this Order; 

C. Waives: 

1. the service and filing of a complaint and notice of hearing; 

2. a hearing; 

3. all post-hearing procedures; 

4. judicial review by any court; 

5. any and all objections to the participation by any member of the Commission's 

staff in the Commission's consideration of the Offer; 

6. any and all claims that Rabobank may possess under the Equal Access to Justice 

Act, 5 U.S.C. § 504 (2006) and 28 U.S.C. § 2412 (2006), and/or the rules 

promulgated by the Commission in conformity therewith, Part 148 of the 

Commission Regulations, 17 C.F.R. §§ 148.1-30 (2012), relating to, or arising 

from, this proceeding; 

7. any and all claims that Rabobank may possess under the Small Business 

Regulatory Enforcement Fairness Act of 1996, Pub. L. No. 104-121, §§ 201-253, 

110 Stat. 847, 857-868 (1996), as amended by Pub. L. No. 110-28, § 8302, 121 

Stat. 112, 204-205 (2007), relating to, or arising from, this proceeding; and 

8. any claims of Double Jeopardy based on the institution of this proceeding or the 

entry in this proceeding of any order imposing a civil monetary penalty or any 

other relief; 

D. Stipulates that the record basis on which this Order is entered shall consist solely of the 

findings contained in this Order to which Rabobank has consented in the Offer; and 

E. Consents, solely on the basis of the Offer, to the Commission's entry of this Order that: 

1. makes findings by the Commission that Rabobank violated Section 6( c), 6( d) and 

9(a)(2) ofthe Act, 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006); 

2. orders Rabobank to cease and desist from violating Sections 6(c), 6(d) and 9(a)(2) 

ofthe Act, 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006); 

3. orders Rabobank to pay a civil monetary penalty in the amount of Four Hundred 

Seventy-Five Million U.S. Dollars ($475,000,000) plus post-judgment interest; 

and 

51 
4. orders Rabobank and its successors and assigns to comply with the conditions and 

undertakings consented to in the Offer and as set forth in Part VII of this Order. 

Upon consideration, the Commission has determined to accept the Offer. 

VII. 

ORDER 

Accordingly, IT IS HEREBY ORDERED THAT: 

A. Rabobank shall cease and desist from violating Sections 6(c), 6(d) and 9(a)(2) of the Act, 

7 U.S.C. §§ 9, 13b and 13(a)(2) (2006) ofthe Act. 

B. Rabobank shall pay a civil monetary penalty of Four Hundred Seventy-Five Million U.S. 

Dollars ($475,000,000) within ten (10) days of the date of entry of this Order (the "CMP 

Obligation")?6 If the CMP Obligation is not paid in full within ten (10) days of the date 

of entry of this Order, then post-judgment interest shall accrue on the CMP Obligation 

beginning on the date of entry of this Order and shall be determined by using the 

Treasury Bill rate prevailing on the date of entry of this Order pursuant to 28 U.S.C. 

§ 1961 (2006). Rabobank shall pay the CMP Obligation by electronic funds transfer, 

U.S. postal money order, certified check, banlc cashier's check, or banlc money order. If 

payment is to be made other than by electronic funds transfer, then the payment shall be 

made payable to the Commodity Futures Trading Commission and sent to the address 

below: 

Commodity Futures Trading Commission 

Division of Enforcement 

ATTN: Accounts Receivables--- AMZ 340 

E-mail Box: 9-AMC-AMZ-AR-CFTC 

DOT IF AA/MMAC 

6500 S. MacArthur Blvd. 

Oklahoma City, OK 73169 

Telephone: ( 405) 954-5644 

If payment is to be made by electronic funds transfer, Rabobank shall contact Linda 

Zurhorst or her successor at the above address to receive payment instructions and shall 

fully comply with those instructions. Rabobanlc shall accompany payment of the CMP 

Obligation with a cover letter that identifies the paying Respondent and the name and 

docket number of this proceeding. The paying Respondent shall simultaneously transmit 

copies ofthe cover letter and the form of payment to the Chief Financial Officer, 

26 Effective June 18, 2008, the Act imposes a $1,000,000 civil monetary penalty for each act of 

attempted and completed manipulation in violation ofthe Act. Many ofRabobank's violations of the Act 

for attempted and completed manipulation occurred after June 18, 2008. 

52 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, 

Washington, D.C. 20581. 

C. Rabobank and its successors and assigns shall comply with the following conditions and 

unde1iakings set forth in the Offer. Rabobank represents that it has already undertaken 

and implemented, or are implementing certain compliance and supervisory controls or 

enhancements consistent with these Undertakings: 

1. PRINCIPLES27 

i. Rabobank agrees to undertake the following: (1) to ensure the integrity 

and reliability of its Benchmark Interest Rate Submission(s), presently and 

in the future; and (2) to identifY, construct and promote effective 

methodologies and processes of setting Benchmark Interest Rates, in 

coordination with efforts by Benchmark Publishers, in order to ensure the 

integrity and reliability of Benchmark Interest Rates in the future. 

11. Rabobank represents and undertakes that each Benchmark Interest Rate 

Submission by Rabobank shall be based upon a rigorous and honest 

assessment of information, and shall not be influenced by internal or 

external conflicts of interest, or other factors or information extraneous to 

any rules applicable to the setting of a Benchmark Interest Rate. 

2. INTEGRITY AND RELIABILITY OF BENCHMARK INTEREST RATE 

SUBMISSIONS 

1. DETERMINATION OF SUBMISSIONS: Rabobank shall determine its 

Submission(s) based on the following Factors, Adjustments and 

Considerations, unless otherwise prohibited by or contrary to an 

affirmative obligation imposed by any law or regulation, or the rules or 

definitions issued by a Benchmark Publisher. Rabobank's transactions 

27 The following terms are defined as follows: 

Benchmark Interest Rate: An interest rate for a currency and maturity/tenor that is calculated 

based on data received from market participants and published to the market on a regular, 

periodic basis, such as LIBOR and Euribor; 

Benchmark Publisher: A banking association or other entity that is responsible for or oversees 

the calculation and publication of a Benchmark Interest Rate; 

Submission(s): The interest rate(s) submitted for each currency and maturity/tenor to a 

Benchmark Publisher. For example, if Rabobank submits a rate for one month and three month 

U.S. Dollar LIBOR, that would constitute two Submissions; 

Submitter(s): The person(s) responsible for determining and/or transmitting the Submission(s); 

and 

Supervisor(s): The person(s) immediately and directly responsible for supervising any portion of 

the process of Submission(s) and/or any of the Submitter(s). 

53 
shall be given the greatest weight in determining its Submissions, subject 

to applying appropriate Adjustments and Considerations in order to reflect 

the market measured by the Benchmark Interest Rate. 28 

Rabobank shall determine its Submissions as described in these 

Undertakings within fourteen (14) days ofthe entry of this Order. 

Ill Factor 1-Rabobank's Borrowing or Lending Transactions 

Observed by Rabobank's Submitters: 

a. Rabobank's transactions in the market as defined by the 

Benchmark Publisher for the particular Benchmark Interest 

Rate; 

b. Rabobank's transactions in other markets for unsecured 

funds, including, but not limited to, certificates of deposit 

and issuances of commercial paper; and 

c. Rabobank's transactions in various related markets, 

including, but not limited to, Overnight Index Swaps, 

foreign currency forwards, repurchase agreements, futures, 

and Fed Funds. 

.. Factor 2- Third Party Transactions Observed by Rabobank's 

Submitters: 

a. Transactions in the market as defined by the Benchmark 

Interest Rate relevant to each of the Submission(s); 

b. Transactions in other markets for unsecured funds, 

including, but not limited to, certificates of deposit and 

issuances of commercial paper; and 

c. Transactions in various related markets, including, but not 

limited to, Overnight Index Swaps, foreign currency 

forwards, repurchase agreements, futures, and Fed Funds. 

111 Factor 3- Third Party Offers Observed by Rabobank's 

Submitters: 

a. Third party offers to Rabobank in the market as defined by 

the Benchmark Publisher relevant to each of the 

Submission(s); 

28 The rules used by Benchmark Publishers to determine Benchmark Interest Rates vary, may not be 

consistent with each other, and provide different levels of guidance as to how to make Submissions. 

54 
II 

b. Third party offers in other markets for unsecured funds, 

including, but not limited to, certificates of deposit and 

issuances of commercial paper, provided to Rabobank by 

interdealer brokers (e.g., voice brokers); and 

c. Third party offers provided to Rabobank in various related 

markets, including, but not limited to, Overnight Index 

Swaps, foreign currency forwards, repurchase agreements, 

and Fed Funds. 

Adjustments and Considerations: All of the following 

Adjustments and Considerations may be applied with respect to 

each of the Factors above: 

a. Time: With respect to the Factors considered above, 

proximity in time to the Submission(s) increases the 

relevance of that Factor; 

b. Market Events: Rabobank may adjust its Submission(s) 

based upon market events, including price variations in 

related markets, that occur prior to the time at which the 

Submission(s) must be made to the Benchmark Publisher. 

That adjustment shall reflect measurable effects on 

transacted rates, offers or bids; 

c. Term Structure: As Rabobank applies the above Factors, if 

Rabobank has data for any maturity/tenor described by a 

Factor, then Rabobank may interpolate or extrapolate the 

remaining maturities/tenors from the available data; 

d. Credit Standards: As Rabobank applies the above Factors, 

adjustments may be made to reflect Rabobank's credit 

standing and/ or the credit spread between the market as 

defined by the Benchmark Publisher and transactions or 

offers in the related markets used in the Factors above. 

Additionally, Rabobank may take into account 

counterparties' credit standings, access to funds, and 

borrowing or lending requirements, and third party offers 

considered in connection with the above Factors; and 

e. Non-representative Transactions: To the extent a 

transaction included among the Factors above significantly 

diverges in an objective manner from other transactions, 

and that divergence is not due to market events as 

addressed above, Rabobank may exclude such transactions 

from its determination of its Submission(s). 

55 
11. SUPERVISOR(S) REVIEW: Effective within fourteen (14) days ofthe 

entry of this Order, each daily Submission shall be reviewed by a 

Supervisor on a daily basis after the Submission(s) are made to the 

Benchmark Publisher. 

111. QUALIFICATIONS OF SUBMITTER(S) AND SUPERVISOR(S): All 

Submitter(s) shall have significant experience in the markets for the 

Benchmark Interest Rate to which they are submitting or a comparable 

market, but may designate less experienced parties, who routinely work 

under their supervision, to make Submission(s) during limited periods of 

absence. All Supervisors shall have significant experience in the markets 

for the relevant Benchmark Interest Rate or a comparable market. 

Submitters, Supervisors and any parties designated to make Submission(s) 

when the Submitter(s) are absent shall not be assigned to any derivatives 

trading desk, unit or division within Rabobank, or participate in 

derivatives trading other than that associated with Rabobank's liquidity 

and liability management. The compensation of Submitter(s) and 

Supervisor(s) also shall not be directly based upon derivatives trading, 

other than that associated with Rabobank's liquidity and liability 

management. 

iv. FIREWALLS: INTERNAL CONTROLS REGARDING IMPROPER 

COMMUNICATIONS AND SUBMISSIONS: Rabobank shall 

implement internal controls and procedures to prevent improper 

communications with Submitter(s) and Supervisor(s) regarding 

Submission(s) or prospective Submission(s) to ensure the integrity and 

reliability of its Submission(s). Such internal controls and procedures 

shall include, but not be limited to: 

111 The "firewalls" contemplated herein will be implemented through 

written policies and procedures that delineate proper and improper 

communications with Submitter(s) and Supervisor(s), whether 

internal or external to Rabobank. For these purposes, improper 

communications shall be any attempt to influence Rabobank's 

Submission(s) for the benefit of any derivatives trading position 

(whether ofRabobank or any third party) or any attempt to cause 

Rabobank's Submitter(s) to violate any applicable Benchmark 

Publisher's rules or definitions, or Section 2 of these Undertakings; 

and 

111 A requirement that the Submitter(s) shall not be located in close 

proximity to traders who primarily deal in derivatives products that 

reference a Benchmark Interest Rate to which Rabobank 

contributes any Submission(s). The two groups should be 

separated such that neither can hear the other. 

56 
v. DOCUMENTATION: Rabobank shall provide the documents set forth 

below promptly and directly to the Commission upon request, without 

subpoena or other process, regardless of whether the records are held 

outside of the United States, to the extent permitted by law. 

• For each Submission, Rabobank shall contemporaneously 

memorialize, and retain in an easily accessible format for a period 

of five (5) years after the date of each Submission, the following 

information: 

a. The Factors, Adjustments and Considerations described in 

Section 2(i) above that Rabobank used to determine its 

Submission(s), including, but not limited to, identifying any 

non-representative transactions excluded from the 

determination of the Submission(s) and the basis for such 

exclusions, as well as identifying all transactions given the 

greatest weight or considered to be the most relevant, and 

the basis for such conclusion; 

b. All models or other methods used in determining 

Rabobank's Submission(s), such as models for credit 

standards and/or term structure, and any adjustments made 

to the Submission(s) based on such models or other 

methods; 

c. Relevant data and information received from interdealer 

brokers used in connection with determining Rabobank's 

Submission(s) including, but not limited to, the following: 

• Identification of the specific offers and bids relied 

upon by Rabobank when determining each 

Submission; and 

• The name of each company and person from whom 

the information or data is obtained; 

d. Rabobank's assessment of"reasonable market size" for its 

Submission(s) (or any other such criteria for the relevancy 

oftransactions to a Benchmark Interest Rate), to the extent 

that the rules for a Benchmark Interest Rate require that 

pertinent transactions considered in connection with 

Submission(s) be of"reasonable market size" (or any other 

such criteria); 

e. Information regarding market events considered by 

Rabobank in connection with determining its 

Submission(s), including, without limitation, the following: 

57 
o The specific market announcement(s) or event(s); 

and 

o Any effect of such market event(s) on transacted 

rates, offers or bids in the relevant markets; and 

f. The identity of the Submitter(s) who made, and the 

Supervisor(s) who reviewed, the Submission(s). 

11 For each Submission, Rabobank shall retain for a period of five (5) 

years after the date of each Submission, the following transactional 

data used by Rabobank to determine its Submission(s); the data 

shall be easily accessible and convertible into Microsoft Excel file 

format; the data shall include, without limitation, the following to 

the extent known to Rabobank at the time of the Submission(s): 

a. Instrument; 

b. Maturity/tenor; 

c. Trade type (i.e., loan/deposit, placing/taking); 

d. Buy/sell indicator; 

e. Transaction date (in mmddyyyy format); 

f. Maturity date (in mmddyyyy format); 

g. Value date (in mmddyyyy format); 

h. Loan effective date; 

1. Customer number; 

J. Currency; 

k. Ticket ID; 

1. Timestamp; 

m. Counterparty A (buyer/bidder); 

n. Counterparty B (seller/offeror); 

o. Nominal/notional size of the transaction; 

p. Interest basis (360/365 day year); 

q. The fixed interest rate; and 

r. Any special or additional terms (e.g., a repurchase 

agreement or some form of "non-vanilla agreement"). 

11 Transaction Records: Rabobank shall retain for a period of five (5) 

years trade transaction records and daily position and risk reports, 

including (without limitation) monthly and quarterly position and 

risk reports, related to the trading activities of Submitter(s) and 

traders who primarily deal in derivatives products that reference a 

Benchmark Interest Rate; the records and reports shall be easily 

accessible and convertible into Microsoft Excel file format. 

58 
111 Requirement To Record Communications: Rabobank shall record 

and retain to the greatest extent practicable all of the following 

communications: 

a. All communications concerning the determination and 

review of the Submission(s); and 

b. All communications oftraders who primarily deal in 

derivatives products that reference a Benchmark Interest 

Rate concerning trades, transactions, prices, or trading 

strategies pertaining to any derivative that references any 

Benchmark Interest Rate (or the supervision thereof). 

The above communications shall not be conducted in a manner to 

prevent Rabobank from recording such communications; 

Audio communications of Submitters and Supervisors shall be 

retained for a period of one (1) year. Audio communications of 

traders who primarily deal in derivatives products that reference a 

Benchmark Interest Rate, and who are located in the New York, 

London, Utrecht, Tokyo, Singapore, and Hong Kong offices of 

Rabobank, shall be retained for a period of six (6) months. Subject 

to a reasonable time to implement, Rabobank's audio retention 

requirements pursuant to these Undertakings shall commence 

within a reasonable period after the entry of this Order and shall 

continue for a period of five (5) years thereafter; 

All communications except audio communications shall be 

retained for a period of five (5) years; and 

Nothing in these Unde1iakings shall limit, restrict or narrow any 

obligations pursuant to the Act or the Commission Regulations 

promulgated thereunder, including but not limited to Regulations 

1.31 and 1.35, 17 C.F.R. §§ 1.31 and 1.35 (2012), in effect now or 

in the future. 

vi. MONITORING AND AUDITING: 

111 Monitoring: Rabobank shall maintain or develop monitoring 

systems or electronic exception reporting systems that identify 

possible improper or unsubstantiated Submissions. Such reports 

will be reviewed on at least a weekly basis and if there is any 

significant deviation or issues, the underlying documentation for 

the Submission shall be reviewed to determine whether the 

Submission is adequately substantiated. If it is not substantiated, 

Rabobanlc shall notify its chief compliance officer(s) and the 

Benchmark Publisher; 

59 
111 Periodic Audits: Starting six (6) months from the date of the entry 

of this Order, and continuing every six ( 6) months thereafter, 

unless an annual audit is scheduled at the same time, Rabobank 

shall conduct internal audits of reasonable, random samples of its 

Submission(s), the factors and all other evidence documenting the 

basis for such Submission(s), and communications ofthe 

Submitter(s) in order to verify the integrity and reliability of the 

process for determining Submission(s); and 

111 Annual Audits By Third Party Auditors: Starting one (1) year 

from the date of the entry of this Order, and continuing annually 

for four (4) additional years thereafter, Rabobank shall retain an 

independent, third-party auditor to conduct an audit of its 

Submission(s) and the process for determining Submission(s), 

which shall include, without limitation, the following: 

a. Reviewing communications of Submitter(s) and 

Supervisor(s); 

b. Interviewing the Submitter(s) and Supervisor(s), to the 

extent they are still employed by Rabobank; 

c. Obtaining written verification from the Submitter(s) and 

Supervisor(s), to the extent they are still employed by 

Rabobank, that the Submission(s) were consistent with this 

Order, the policies and procedures in place for making 

Rabobank's Submission(s), and the definitions applicable 

to the Benchmark Interest Rate for which Rabobank made 

Submission(s); and 

d. A written audit repoti to be provided to Rabobank and the 

Commission (with copies addressed to the Commission's 

Division of Enforcement (the "Division")). 

vn. POLICIES, PROCEDURES AND CONTROLS: Within sixty (60) days 

ofthe entry ofthis Order, Rabobank shall develop policies, procedures 

and controls to comply with each of the specific Undertakings set forth 

above with the goal of ensuring the integrity and reliability of its 

Submission(s). In addition, Rabobank shall develop policies, procedures 

and controls to ensure the following: 

• The supervision of the Submission process; 

• That any violations of the Undertakings or any questionable, 

unusual or unlawful activity concerning Rabobank's Submissions 

are reported to and investigated by Rabobank's compliance or 

60 
.. 

II 

II 

legal personnel and reported, as necessary, to authorities and the 

Benchmark Publishers; 

The periodic but routine review of electronic communications and 

audio recordings of or relating to the Submission Process; 

Not less than monthly, the periodic physical presence of 

compliance personnel on the trading floors of the Submitter(s) 

and/or traders who primarily deal in derivatives products that 

reference a Benchmark Interest Rate in connection with these 

Policies, Procedures and Controls; 

The handling of complaints concerning the accuracy or integrity of 

Rabobank's Submission(s) including: 

a. Memorializing all such complaints; 

b. Review and follow-up by the chief compliance officer(s) or 

his designee of such complaints; and 

• The reporting of material complaints to the Chief Executive 

Officer and Board of Directors, relevant self-regulatory 

organizations, the relevant Benchmark Publisher, the Commission, 

and/or other appropriate regulators. 

viii. TRAINING: Rabobank shall develop training programs for all employees 

who are involved in its Submission(s ), including, without limitation, 

Submitters and Supervisors, and all traders who primarily deal in 

derivatives products that reference a Benchmark Interest Rate. Submitters 

and Supervisors shall be provided with preliminary training regarding the 

policies, and procedures and controls developed pursuant to Section 2(vii) 

of these Undertakings. By no later than March 30, 2014, all Submitters, 

Supervisors, and traders who primarily deal in derivatives products that 

reference a Benchmark Interest Rate shall be fully trained in the 

application of these Undertakings to them, as set forth herein. Thereafter, 

such training will be provided promptly to employees newly assigned to 

any of the above listed responsibilities, and again to all Submitters, 

Supervisors and traders who primarily deal in derivatives products that 

reference a Benchmark Interest Rate as part ofRabobank's regular 

training programs. The training shall be based upon the individual's 

position and responsibilities, and as appropriate, address the following 

topics: 

• The Undertakings set forth herein; 

11 The process of making Submission(s); 

61 
II 

II 

Ill 

Ill 

II 

The impropriety of attempting to influence the determination of 

Rabobank's Submission(s); 

The requirement to conduct all business related to Rabobanlc's 

Submission(s) on Rabobanlc's recorded telephone and electronic 

communications systems, and not on personal telephones or other 

electronic devices, as set forth in Section 2(v) of these 

Undertakings; 

The requirement to conduct certain business related to derivatives 

products that reference a Benchmark Interest Rate on Rabobanlc's 

recorded telephone and electronic communications systems, and 

not on personal devices or systems, as set forth in Section 2(v) of 

these Undertakings; 

The policies and procedures developed and instituted pursuant to 

these Undertakings; and 

The employment and other potential consequences if employees 

act unlawfully or improperly in connection with Rabobank's 

Submission(s) or process for determining Submission(s). 

tx. REPORTS TO THE COMMISSION: 

111 Compliance with Undertakings: Every four (4) months, starting 

120 days from the entry of this Order, Rabobanlc shall make 

interim reports to the Commission, through the Division, 

explaining its progress towards compliance with the Undertakings 

set forth herein. Within 365 days of the entry of this Order, 

Rabobanlc shall submit a report to the Commission, through the 

Division, explaining how it has complied with the Undetiakings set 

forth herein. The report shall attach copies of and describe the 

internal controls, policies and procedures that have been designed 

and implemented to satisfy the Undertakings. The report shall 

contain a cetiification from a representative ofRabobanlc's 

Executive Management, after consultation with Rabobanlc's chief 

compliance officer(s), that Rabobank has complied with the 

Undetiakings set forth above, and that it has established policies, 

procedures and controls to satisfy the Undertakings set forth in this 

Order; 

111 Submitter(s), Supervisor(s), and Heads of Appropriate Trading 

Desks: Within fourteen (14) days ofthe entry ofthis Order, or as 

soon as practicable thereafter, Rabobanlc shall provide, meet with 

and explain these Undertakings to all Submitters, Supervisors and 

the head of each trading desk that primarily deals in derivatives 

that reference a Benchmark Interest Rate. Within that same time 

62 
Ill 

frame, Rabobank shall provide to the Commission, through the 

Division, written or electronic affirmations signed by each 

Submitter, Supervisor, and head of each trading desk that primarily 

deals in derivatives that reference a Benchmark Interest Rate, 

stating that he or she has received and read the Order and 

Undertakings herein, and that he or she understands these 

Undertakings to be effective immediately; and 

Disciplinary and Other Actions: Rabobank shall promptly report 

to the Commission, through the Division, all improper conduct 

related to any Submission(s) or the attempted manipulation or 

manipulation of a Benchmark Interest Rate, as well as any 

disciplinary action, or other law enforcement or regulatory action 

related thereto, unless de minimis or otherwise prohibited by 

applicable laws or regulations. 

3. DEVELOPMENT OF RIGOROUS STANDARDS FOR BENCHMARK 

INTEREST RATES 

To the extent Rabobank is or remains a contributor to any Benchmark Interest 

Rate, Rabobank agrees to make its best efforts to participate in effmis by current 

and future Benchmark Publishers, other price reporting entities and/or regulators 

to ensure the reliability of Benchmark Interest Rates, and through its patiicipation 

to encourage the following: 

1. METHODOLOGY: Creating rigorous methodologies for the contributing 

panel members to formulate their Submissions. The aim of such 

methodologies should be to result in a Benchmark Interest Rate that 

accurately reflects the rates at which transactions are occurring in the 

market being measured by that Benchmark Interest Rate; 

11. VERIFICATION: Enforcing the use ofthose methodologies through an 

effective regime of documentation, monitoring, supervision and auditing, 

required by and performed by the Benchmark Publishers, and by the 

contributing panel members internally; 

111. INVESTIGATION: Facilitating the reporting of complaints and concerns 

regarding the accuracy or integrity of Submissions to Benchmark Interest 

Rates or the published Benchmark Interest Rate, and investigating those 

complaints and concerns thoroughly; 

1v. DISCIPLINE: Taking appropriate action if, following a thorough 

confidential investigation, the Benchmark Publisher determines that a 

complaint or concern regarding the accuracy or integrity of a Submission 

or the published Benchmark Interest Rate has been substantiated; 

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v. TRANSPARENCY: Making regular repmis to the public and the markets 

of facts relevant to the integrity and reliability of each Benchmark Interest 

Rate. Such reports should include, but not be limited to, the following: 

Ill 

II 

Ill 

At the time each Benchmark Interest Rate is published, the 

Benchmark Publisher should display prominently whether each 

rate is based entirely on transactions in the market the rate is 

supposed to reflect, or whether it instead is based, in whole or in 

part, on other data or information; 

The Benchmark Publisher also should make periodic reports 

regarding the number and nature of complaints and concerns 

received regarding the accuracy or integrity of Submissions or the 

published Benchmark Interest Rate while maintaining the 

anonymity of all those who have reported or are the subject of 

complaints and concerns; 

The Benchmark Publisher should additionally make periodic 

repmis regarding the results of all investigations into such 

complaints and concerns while maintaining the anonymity of all 

those involved in investigations that have not yet been completed; 

and 

Vl. FORMULATION: Periodically examining whether each Benchmark 

Interest Rate accurately reflects the rate at which transactions are 

occurring in the market being measured (using the statistical method 

prescribed by that Benchmark Interest Rate), and evaluating whether the 

definition and instructions should be revised, or the composition of the 

panel changed; 

Such examinations should include a rigorous mathematical comparison of 

transactions in the relevant market with the published Benchmark Interest 

Rate on the same day over a specified period, and a determination of 

whether any differences are statistically or commercially significant. 

Every four (4) months, statiing 120 days from the entry ofthis Order, Rabobank 

shall report to the Commission, through the Division, either orally or in writing, 

on its participation in such efforts, to the extent that such reporting is not 

otherwise prohibited by law or regulations, by the rules issued by Benchmark 

Publishers, or by nondisclosure agreements by and between Rabobank and 

Benchmark Publishers. 

4. COOPERATION WITH THE COMMISSION 

i. Rabobank shall cooperate fully and expeditiously with the Commission, 

including the Division, and any other governmental agency in this action, 

and in any investigation, civil litigation or administrative matter related to 

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the subject matter of this action or any current or future Commission 

investigation related thereto. As part of such cooperation, Rabobank 

agrees to the following for a period of five ( 5) years from the date of the 

entry of this Order, or until all related investigations and litigation are 

concluded, including through the appellate review process, whichever 

period is longer: 

11 Preserve all records relating to the subject matter of this 

proceeding, including, but not limited to, audio files, electronic 

mail, other documented communications, and trading records; 

11 Subject to applicable laws and regulations, comply fully, promptly, 

completely, and truthfully with all inquiries and requests for 

information or documents; 

11 Provide authentication of documents and other evidentiary 

material; 

11 Subject to applicable laws and regulations, provide copies of 

documents within Rabobank's possession, custody or control; 

• Subject to applicable laws and regulations, Rabobank will make its 

best effmis to produce any current (as of the time ofthe request) 

officer, director, employee, or agent ofRabobank, regardless ofthe 

individual's location, and at such location that minimizes 

Commission travel expenditures, to provide assistance at any trial, 

proceeding, or Commission investigation related to the subject 

matter of this proceeding, including, but not limited to, requests for 

testimony, depositions, and/or interviews, and to encourage them 

to testify completely and truthfully in any such proceeding, trial, or 

investigation; and 

111 Subject to applicable laws and regulations, Rabobank will make its 

best effmis to assist in locating and contacting any prior (as of the 

time of the request) officer, director, employee, or agent of 

Rabobank; 

n. Rabobank also agrees that it will not undertake any act, other than as 

required by applicable law, that would limit its ability to cooperate fully 

with the Commission. Rabobank will designate an agent located in the 

United States of America to receive all requests for information pursuant 

to these Undertakings, and shall provide notice regarding the identity of 

such Agent to the Division upon entry of this Order. Should Rabobank 

seek to change the designated agent to receive such requests, notice of 

such intention shall be given to the Division fourteen (14) days before it 

65 
occurs. Any person designated to receive such request shall be located in 

the United States of America; and 

111. Rabobank and the Commission agree that nothing in these Unde1iakings 

shall be construed so as to compel Rabobank to continue to contribute 

Submission(s) related to any Benchmark Interest Rate. Without prior 

consultation with the Commission, Rabobank remains free to withdraw 

from the panel of contributors to any Benchmark Interest Rate. 

5. PROHIBITED OR CONFLICTING UNDERTAKINGS 

Should the Undertakings herein be prohibited by, or be contrary to the provisions 

of any obligations imposed on Rabobank by any presently existing, or hereinafter 

enacted or promulgated laws, regulations, regulatory mandates, or the rules or 

definitions issued by a Benchmark Publisher, then Rabobank shall promptly 

transmit notice to the Commission (through the Division) of such prohibition or 

conflict, and shall meet and confer in good faith with the Commission (through 

the Division) to reach an agreement regarding possible modifications to the 

Unde1iakings herein sufficient to resolve such inconsistent obligations. In the 

interim, Rabobank will abide by the obligations imposed by the law, regulations, 

regulatory mandates and Benchmark Publishers' rules and definitions. Nothing in 

these Undertakings shall limit, restrict or narrow any obligations pursuant to the 

Act or the Commission Regulations promulgated thereunder, including but not 

limited to Regulations 1.31 and 1.35, 17 C.F.R. §§ 1.31 and 1.35 (2012), in effect 

now or in the future. 

6. PUBLIC STATEMENTS 

Rabobank agrees that neither it nor any of its successors and assigns, agents or 

employees under their authority or control shall take any action or make any 

public statement denying, directly or indirectly, any findings or conclusions in 

this Order or creating, or tending to create, the impression that this Order is 

without a factual basis; provided, however, that nothing in this provision shall 

affect Rabobank's (i) testimonial obligations, or (ii) right to take legal positions in 

other proceedings to which the Commission is not a party. Rabobank and its 

successors and assigns shall undertake all steps necessary to ensure that all of 

their agents and/or employees under its authority or control understand and 

comply with this agreement. 

D. Pmiial Satisfaction: Rabo bank understands and agrees that any acceptance by the 

Commission of partial payment ofRabobank's CMP Obligation shall not be deemed a 

waiver of its obligation to make further payments pursuant to this Order, or a waiver of 

the Commission's right to seek to compel payment of any remaining balance. 

66 
The provisions of this Order shall be effective as of this date. 

By the Commission. 

Melissa D. Jurgens 

Secretary of the Commission 

Commodity Futures Trading Commission 

Dated: October 29, 2013 

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