EU said to probe possible rigging of agency bond trading

Brussels

THE European Union is investigating possible manipulation of agency bond trading, joining agencies in the US and UK already looking into the US$9 trillion market, according to a person familiar with the matter.

EU regulators sent requests for information last year following the opening of a criminal probe by the US Justice Department into supranational, sub-sovereign and agency bonds, known as SSAs, according to the source, who asked not to be identified because the probe is confidential. The UK Financial Conduct Authority (FCA) is also looking into the matter.