ASIC v ANZ: ‘Set rate as high as f..kin’ possible’

ANZ senior traders have allegedly been caught manipulating the bank bill swap rate in expletive-strewn telephone calls.

In the hothouse of the trading floor, some of ANZ’s most senior traders have been caught allegedly manipulating the bank bill swap rate in expletive-strewn telephone calls and electronic chats, with some demanding the interest rate be “set as high as f..kin’ ­possible”.

The documents name some of ANZ’s most senior traders at the time as taking part in the alleged scheme.

These included Robert O’Callaghan, then global head of fixed income, Etienne Alexiou, head of mismatch trading and Jason Pritchard, then head of balance sheet trading.

It also names the ANZ representatives on the BBSW board, Matthew Morris, Andrew Miller and Paul Woodward.

In one recorded telephone conversation from June 10, 2010, between Pritchard and Morris, the pair discuss a plan of junior trader Mark Budrewicz, with Pritchard asking Morris to set the rate “as high as f..kin’ possible” to pull off the alleged scheme.

“He’s come up with the idea of taking 500 million of the bills in the June Futures … accepting delivery, which settles tomorrow … But offloading them into the rate set to protect it …

“That represents $3 million of f..kin’ income to us,” Pritchard said, according to court documents.

“At the very least we want to protect it. If we can’t find a f..king bid, then it’s time to go, right. … F..kin’ and just keep going until we find the bid … and I want the rate set as high as f..kin’ possible.”

In another email on December 9 to the manager of futures operations Budrewicz states “stock is going to be used to affect a rate set that I have tomorrow … will see how it goes.”

In another recorded exchange between Pritchard and Budrewicz the pair discuss ANZ’s BBSW rate set exposure and ANZ trading in the rate set window, Pritchard goes on to discuss “rate sets”.

“If they want to start ramming stock lower tomorrow — i.e., NAB to buy it to sell out, excuse me, then I — I’ll — I actually want to know what — what the f..k is going on, why haven’t we been issuing. I’ll be pissed off if — you know, if we — we have it a lot lower tomorrow.

“Because a billion and a half, which is — well, near enough to it, which is what you’re telling me we’ve got to sell, should be enough to keep it at or around 90. … and if we can — you know, if we can f..king jag, you know 3 points on 5 billion, that’s half a million dollars just bang, done. People don’t understand half a million dollars. Paul’s up that for the year. You know? So we just need to f..king do that. Especially the f..king rate sets.”