UK regulator, the Competition and Markets Authority (CMA) has fined Citi, HSBC, Morgan Stanley, and the Royal Bank of Canada £104.5 million for sharing sensitive information about UK bonds between 2009 and 2013.
The CMA charged the four banking giants and Deutsche Bank for violating competition rules in May 2023. The exchanges took place between individual traders in online Bloomberg chatrooms, disclosing details on the pricing of UK government bonds – particularly gilts and gilt asset swaps.
Deutsche Bank was granted immunity from the fine for admitting anti-competitive activity via the CMA leniency policy. Citi also admitted to the activity and received a reduced fine. The four lenders have reached a settlement with the CMA.
A Citi spokesperson told Reuters: "We are pleased to resolve this longstanding matter with the CMA from over a decade ago. We cooperated fully with the CMA and remain committed to ensuring full regulatory compliance."
A statement from Deutsche Bank statement declared that it "proactively reported the issue to the UK authority and cooperated fully in the subsequent investigation".
The banks are charged with the following fines, including leniency and settling discounts:
- Citi: £17.16 million
- HSBC: £23.4 million
- Morgan Stanley: 29.7 million
- RBC: 34.2 million
Juliette Enser, executive director of competition enforcement at the CMA, stated: “Following constructive engagement between the banks and the CMA, we are pleased that we have been able to settle these 5 cases involving the past sharing of competitively sensitive information about pricing.
“The financial services sector is an integral part of the UK economy, contributing billions every year, and it’s essential that it functions effectively. Only through healthy and competitive markets can we ensure businesses and investors have confidence to invest and grow – for the benefit of all in the UK.”