The FCA said that the purpose of the wash trades
was to "make or facilitate brokerage payments to two firms of brokers in recognition of his receipt of personal hospitality".
In addition, despite red flags and trading alerts surrounding apparent wash trades
, spoofing or layering by people affiliated with the unregistered BDs, Lightspeed did not investigate or otherwise pursue AML activities it should have acted on to follow through on the questionable transactions.
However, that month, (http://www.ibtimes.co.uk/articles/432647/20130207/libor-fixing-scandal-icap-wash-trade-michael.htm) Icap's chief executive Michael Spencer, and former Conservative party treasurer, declared that the group did not find "wash trades
," used by banks to reward brokers for their help in manipulate key interbank lending rates, in a bid to distance itself from the Libor rigging scandal.
At least 30 so-called wash trades
went undetected between September 2008 and August 2009, according to the FSA.