At the heart of the scandal are market interest rates called Libor and Euribor.
Deutsche has been looking into alleged manipulation of the Libor and Euribor benchmark lending rates.
BBC: Deutsche Bank suspends traders for alleged Libor-rigging
Regardless of whether banks participate in the setting of Euribor, all are heavily exposed to it.
"As of this moment there are no other banks looking to leave the Euribor panel, " he said.
Euribor futures advanced by 16 basis points while the two-year yield sank by 12 basis points to 1.78%.
And that is just a small fraction of the market that is influenced by Libor and Euribor rates.
The Euribor rates that are reported include the cost of borrowing for anything from one week, to an entire year.
In future, LIBOR and its equivalents like EURIBOR should be set on the basis of actual, not estimated, borrowing costs.
The European Union is nearing completion of an investigation into potential collusive activity by banks in the setting of Euribor.
Looking at euribor contracts makes you think that a bull market is already well underway with implied yields continuing to slide.
Barclays' misconduct relates to the daily setting of the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).
The bonds carry a variable interest rate that tracks six-month Euribor rates with an average additional margin of 263 basis points.
The implied three-month yield on March 2012 expiration euribor fell to 1.59%.
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Many mortgages across Europe track Euribor rather than the ECB benchmark rate.
The funds--Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia--will accept no redemptions or subscriptions until further notice, BNP said.
Euribor futures rose in defiance almost daring the ECB to make such a bold move in the face of growing financial market uncertainty.
FORBES: Eurozone Spreads Blow-Out as Focus Shifts From Athens To Lisbon
More than a dozen financial firms, including JP Morgan and Citigroup of the US, are being investigated by regulators over Libor and Euribor.
BBC: Deutsche Bank suspends traders for alleged Libor-rigging
Already the risk of insuring against an Italian default is priced at 186 basis points over three-month Euribor, up from166 basis points last week.
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Libor and Euribor are used to price hundreds of trillions of pounds worth of financial contracts, including loans and mortgages to businesses and individuals.
BBC: Deutsche Bank suspends traders for alleged Libor-rigging
In determining Euribor, banks voluntarily submit levels at which they believe a theoretical "prime bank" could borrow in various currencies and at various maturities.
Raiffeisen's parent bank, Raiffeisen Zentralbank Oesterreich, for example, is one of the biggest mortgage lenders in Austria, where home-loan rates are often tied to Euribor.
Euribor was set up by the European Banking Federation in 1999 to establish a new interbank reference rate within what is now the 17-country currency union.
Euribor futures surged as implied yields slid and the three-month Libor eased today for the first time since mid-March to 1.42% consistent with a futures price of 98.58.
The departures chip away at one of Euribor's supposed strengths: the number of banks in its contributing panel, which helps to guard against the possibility of rate manipulation.
That is why, as I've mentioned before, it is pointless looking at Libor and euribor interest rates for signs of banking stress, because they are semi-irrelevant markets these days.
So, maybe the Euribor and Libor rates correspond to something, but we know for a fact that they do not always, or even usually, correspond to an actual transaction.
Euribor futures rose as the yield curve flattened with few investors indicating that the ECB would be in any mood to further restrict monetary policy when it meets on Thursday.
Reuters reported Thursday morning that the rate on the three-month Euribor, a gauge for interbank lending in Europe, rose 1.2% from 1.19%, showing greater expectations for an interest rate hike.
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His strategy was based on the fixing of three-month swaps pegged to Euribor -- the euro-based interbank lending rate set in Brussels by averaging 44 banks' submissions, regulators have said.
And while the move shaves just one-tenth of a percent off its projection, traders began to doubt the extent of future tightening sending implied yields tumbling across the euribor curve.
FORBES: Inflation Shakedown Dampens Short End Of European Yield Curve
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