The UK competition regulator imposed fines totaling more than £100 million on four major banks that leaked confidential information about British government bonds in Bloomberg chat rooms.
RBC received the largest fine, followed by Morgan Stanley, HSBC, and Citi. Deutsche Bank was exempted from penalties after reporting the irregularities to the CMA. Citi's fine was reduced by more than 50% due to a settlement reached during the investigation.
"The financial services sector is vital to the UK economy and it's essential that it operates effectively," said Juliette Enser, interim executive director of competition enforcement at the CMA.
The banks have until April 22 to pay the fines imposed by the CMA. The investigation revealed that traders from these banks exchanged messages with rivals about transactions involving UK government bonds between 2009 and 2013.
Although the banks implemented "extensive compliance measures" to prevent such behavior, the CMA decided to impose sanctions on them. It is noteworthy that Deutsche Bank was involved in the case through individual traders who shared confidential information.
