HSBC, Citi, Deutsche Bank, Morgan Stanley and Royal Bank of Canada are being investigated by the UK’s Competition and Markets Authority (CMA) for allegedly breaking competition law by exchanging sensitive information on government bond trading activities in one-to-one online chats.
The CMA alleges that the banks shared details on pricing and other aspects of their trading strategies between 2009 and 2013. Deutsche Bank and Citi have admitted to involvement in anti-competitive activity, while HSBC, Morgan Stanley and Royal Bank of Canada have not admitted any wrongdoing.
Michael Grenfell, Executive Director of Enforcement at the CMA, said: “These alleged activities are very serious and warrant the detailed investigation we have undertaken. This could have denied taxpayers, pension savers and financial institutions the benefits of full competition for these products, including the minimisation of borrowing costs.”
The CMA will now consider further representations from the banks before reaching a final decision on next steps.