The British regulator caught five banks in collusion when trading government bonds in Britain
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UK Competition and Markets Authority (CMA) announced on the disclosure of collusion between traders of five banks in the trading of British government bonds. Deutsche Bank, Citi, HSBC, Morgan Stanley and Royal Bank of Canada are accused of illegal activities.
As shown by a preliminary investigation, traders of five banks shared among themselves in the Instant Bloomberg messenger information about their strategies, pricing and other data related to trading in British government bonds. So the banks, instead of competing with each other, negotiated who would buy the bonds and at what price, which is a violation of fair competition laws.
As CMA notes, the exchange of information took place in the first years after the global financial crisis – in the period from 2009 to 2013. The illegal activity of traders was reported to the regulator by Deutsche Bank, which will now escape punishment. Citi has also pleaded guilty, but will still be fined, but the amount of the fine will be significantly reduced in exchange for cooperation. The other participants in the conspiracy pleaded not guilty.
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