Five banks breach competition law over UK government bonds, watchdog says

Five years after the global financial crisis, five of the world’s largest banks violated UK competition law by sharing sensitive information when trading British bonds, according to the country’s competition regulator.

A preliminary investigation found that a handful of traders at Citigroup, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada illegally shared sensitive information, including pricing and strategies, in Bloomberg Terminal chat rooms. revealed in the results. Competition and Market Authority on wednesday.

As a result, banks could have “completely denied any competitive advantage” to counterparties such as pension funds and the UK Debt Management Authority, regulators said.

The CMA said the alleged sharing of confidential information took place between 2009 and 2013, adding that traders exchanged information “in the context” of a sale and buyback of government bonds by the DMO. gold leaf by the Bank of England.

“Our preliminary decision found that five global banks violated competition laws in the aftermath of the global financial crisis,” said CMA Executive Director Michael Grenfell.

“A well-functioning and competitive bond market is not only central to the UK’s reputation as a global financial hub, but also benefits tens of millions of taxpayers and pension savers. These alleged activities are therefore very serious and justify the detailed investigation that we have undertaken,” he added.

Regulators said they could impose fines if they concluded that at least two banks engaged in anti-competitive behavior.

Competition watchdogs are alarmed by Deutsche Bank’s conduct, saying Germany’s largest bank has admitted to engaging in “anti-competitive” activities. Therefore, even if the CMA imposes a fine, Deutsch will not be subject to the fine.

Citigroup also confirmed its involvement and entered into a settlement agreement with the CMA. If penalties are imposed, Wall Street banks will have their fines reduced, regulators said.

HSBC, Morgan Stanley and Royal Canada Bank have denied any wrongdoing, the CMA said, adding that an investigation was ongoing.

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Five years after the global financial crisis, five of the world’s largest banks violated UK competition law by sharing sensitive information when trading British bonds, according to the country’s competition regulator.A preliminary investigation found that a handful of traders at Citigroup, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada illegally shared sensitive information, including pricing and strategies, in Bloomberg Terminal chat rooms. revealed in the results. Competition and Market Authority on wednesday.As a result, banks could have “completely denied any competitive advantage” to counterparties such as pension funds and the UK Debt Management Authority, regulators said.The CMA said the alleged sharing of confidential information took place between 2009 and 2013, adding that traders exchanged information “in the context” of a sale and buyback of government bonds by the DMO. gold leaf by the Bank of England.”Our preliminary decision found that five global banks violated competition laws in the aftermath of the global financial crisis,” said CMA Executive Director Michael Grenfell.“A well-functioning and competitive bond market is not only central to the UK’s reputation as a global financial hub, but also benefits tens of millions of taxpayers and pension savers. These alleged activities are therefore very serious and justify the detailed investigation that we have undertaken,” he added.

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Regulators said they could impose fines if they concluded that at least two banks engaged in anti-competitive behavior.Competition watchdogs are alarmed by Deutsche Bank’s conduct, saying Germany’s largest bank has admitted to engaging in “anti-competitive” activities. Therefore, even if the CMA imposes a fine, Deutsch will not be subject to the fine.Citigroup also confirmed its involvement and entered into a settlement agreement with the CMA. If penalties are imposed, Wall Street banks will have their fines reduced, regulators said.HSBC, Morgan Stanley and Royal Canada Bank have denied any wrongdoing, the CMA said, adding that an investigation was ongoing.
https://www.ft.com/content/3ead7180-fffd-4caa-b48f-0f767522d802 Five banks breach competition law over UK government bonds, watchdog says

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