Dealers from five major banks illegally exchanged information about government bonds in the years after the financial crisis, the British antitrust authority said on Wednesday.
The Competition and Markets Authority said a small number of employees from Citigroup, Deutsche Bank, HSBC, Morgan Stanley and the Royal Bank of Canada exchanged anti-competitive information about the buying and selling of UK government bonds and gilts respectively.
The exchange took place at different times between 2009 and 2013 in individual calls on Bloomberg terminals, the regulatory authority announced in its publication of preliminary results. Traders shared details on pricing and other aspects of trading strategies related to gilts and gilt asset swaps, it said.
The CMA, which has been investigating since 2018, said Deutsche Bank had reported its role under the Antitrust Authority’s leniency program. Citi applied for leniency during the investigation.
If both banks continue to cooperate, Deutsche Bank will not be fined, while Citi’s fine will be reduced, the CMA said. Citi has entered into a settlement agreement, it said. HSBC, Morgan Stanley and RBC have not admitted wrongdoing.
“At this point, it should not be assumed that any of the banks broke the law,” the agency added. The CMA stated that it could ultimately penalize banks if it concluded that two or more of them engaged in anti-competitive activities.
Most banks said they had fully cooperated with the CMA, and Citi said it was glad to put the matter behind it. Deutsche Bank emphasized that it proactively reported the issue to the CMA. HSBC, Morgan Stanley and RBC said they disagreed with the agency’s preliminary findings.