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Italian prosecutors arrest ex-Deutsche Bank trader in Euribor probe

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By Reuters

By Pamela Barbaglia and Emilio Parodi

LONDON/MILAN (Reuters) – Britain’s Serious Fraud office said on Friday former Deutsche Bank <DBKGn.DE> trader Andreas Hauschild was arrested in Italy over alleged manipulation of the Euribor benchmark and Milan prosecutors would need to decide whether to hand him over.

Hauschild was among 11 individuals who were charged in Britain in 2015 of rigging the Euribor interest benchmark with conspiracy to defraud.

Euribor, the euro interbank offered rate, is the Brussels-based equivalent of London-based benchmark Libor.

Designed to estimate the costs at which banks will lend to each other, rates such as Libor and Euribor are central cogs in the global financial system and a benchmark for interest rates on an estimated $450 trillion of financial contracts, from derivatives to student loans.

Hauschild, a German native, previously escaped trial in Britain because Germany rejected an extradition request.

He is now facing a new extradition request in Milan where a court hearing will take place towards the end of October, a judicial source said. 

(Editing by Elaine Hardcastle)