Egg Clearinghouse Inc. Manipulated Egg Prices on Its Electronic Exchange

1 articles · Updated · Bloomberg · Jul 1

Egg Clearinghouse Inc. was described as having manipulated Egg Libor, the benchmark price set on its electronic egg exchange.
ECI’s market is not the main venue for egg purchases; supermarkets, restaurants and bakeries usually buy through direct supply contracts with producers.
The exchange instead serves the surplus-and-shortfall market, where producers with extra eggs sell to producers that are net short and need eggs to meet customer deliveries.
That role gives the benchmark broader importance because it helps set prices in the market for marginal egg supply rather than routine retail procurement.