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Britain’s Competition and Markets Authority (CMA) has fined four major banks—Citi, HSBC, Morgan Stanley, and the Royal Bank of Canada—a combined £104.5 million ($132.4 million) for exchanging sensitive information about UK government bonds.
The fines come as part of a settlement with the banks, following an investigation that revealed traders had shared competitively sensitive details in private Bloomberg chatrooms between 2009 and 2013. The CMA found that the banks’ actions breached competition laws, with traders exchanging information on pricing, auction activity, and transactions related to UK gilts—bonds issued by the UK government.
The investigation, which concluded in May 2023, also implicated Deutsche Bank. However, the German lender was granted immunity from fines as it proactively reported the issue and cooperated with authorities.
The collusion took place in the aftermath of the 2008 financial crisis when the Bank of England was conducting regular auctions to stabilise the economy through government bond purchases. Individual traders at the implicated banks shared market-sensitive information related to these auctions, the subsequent buying and selling of gilts, and gilt asset swaps.
The CMA’s executive director of competition enforcement, Juliette Enser, emphasised the seriousness of the misconduct. “The fines imposed today reflect the CMA’s commitment to dealing with competition law breaches and deterring anti-competitive conduct,” she stated, adding that the penalties would have been significantly higher had the banks not taken extensive measures to prevent future violations.
Citi acknowledged the settlement, stating, “We are pleased to resolve this longstanding matter with the CMA from over a decade ago. We cooperated fully and remain committed to ensuring full regulatory compliance.” Deutsche Bank also reaffirmed its cooperation, highlighting that it had proactively reported the issue.
The other banks—HSBC, Morgan Stanley, and the Royal Bank of Canada—did not immediately respond to requests for comment.
The CMA’s ruling underscores its vigilance in policing financial markets and ensuring fair competition, particularly in sectors crucial to economic stability.
Melissa Enoch
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