Zenith CC&P Current Awareness

EUR1 billion fine on Banks for rigging Forex

17 May 2019

Prof. Suzanne Rab

Zenith's Suzanne Rab writes:

EUR1 billion fine on Banks for rigging Forex

The European Commission has fined fined Barclays, RBS, Citigroup, JPMorgan and MUFG Bank  - previously Bank of Tokyo-Mitsubishi - EUR1.07 billion for their participation in two Forex cartels for 11 currencies between 2007 and 2013.

UBS received full immunity from fines under the Commission's leniency policy.

According to the Commission, traders in charge of Forex spot trading exchanged sensitive information and trading plans.  On some occasions they coordinated their trading through online chatrooms.

The first cartel (the "Forex - Three Way Banana Split” cartel) involved UBS, Barclays, RBS, Citigroup and JP Morgan.  The second cartel (the Forex- Essex Express cartel), involved UBS, Barclays, RBS and MUFG Bank.

All the banks accepted their involvement in the cartels. The decisions were concluded under the Commission’s settlement policy, which lead to a 10% reduction in the fines.  All the banks apart from MUFG received additional leniency discounts to reflect their cooperation with the Commission’s investigation.

These are the 30th and 31st settlements since the first settlement decision was taken by the Commission in May 2010.

RBS’s settlements reflect settlements with the UK and US authorities on similar issues in 2014 and 2015.

Case AT.40135. Commission press release IP/19/2568.

Current Awareness

By the CC&P team