Jefferies Sues Nasdaq Unit Over Interest Rate Contracts

Law360, New York (September 19, 2011, 7:59 PM EDT) -- Jefferies & Co. Inc. on Monday sued a Nasdaq OMX Group Inc. subsidiary in New York state court for allegedly luring it into interest rate contracts by falsely claiming they performed like traditionally safe instruments, causing Jefferies tens of millions of dollars in losses.

International Derivatives Clearing Group LLC had touted its interest rate swap futures contracts as "economically equivalent" to over-the-counter transactions, when in reality their terms had significantly deviated from those of OTC trades, according to the suit.

Jefferies said IDCG CEO Garry O'Connor...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.