by Sinead Cruise
LONDON (Reuters) – Five major international banks allegedly broke British law by exchanging sensitive information about government bond transactions during online conversations between traders, preliminary findings of an investigation by the authority showed on Wednesday. competition and UK markets.
In a press release, the CMA (Competition and Markets Authority) announces that Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada illegally shared information between 2009 and 2013 in Bloomberg chatrooms between a small number of traders.
The talks reportedly focused on the buying and selling of UK government bonds, including details on pricing among other strategic aspects, the watchdog said.
Deutsche Bank and Citi have admitted involvement in anti-competitive activities.
For having alerted the CMA upstream via its leniency program, the first German bank will not be fined if the preliminary conclusions of the CMA are confirmed, while the American bank, which has also concluded an agreement, will be fined. a reduced fine, if any.
As for HSBC, Morgan Stanley and Royal Bank of Canada, they deny any wrongdoing.
“A competitive and well-functioning bond market benefits tens of millions of taxpayers and savers, as well as being central to the UK’s reputation as a global financial centre,” said CMA’s Michael Grenfell.
“These alleged activities are therefore very serious and warrant the thorough investigation we have undertaken. They could have deprived taxpayers, savers and financial institutions of the benefits of full competition for these products,” he added. .
The UK competition authority said it would now consider submissions from the banks before making a final decision.
(French version Laetitia Volga, edited by Bertrand Boucey and Blandine Hénault)
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