|
Interest Rate Derivatives (Swiss Franc Bid-Ask Spreads) |
|
Overall Cartel Period |
2007-2007 |
|
Participants |
RBS, UBS, JP Morgan, Credit Suisse |
|
Total Fines (DOJ) |
No fines imposed
|
|
Total Fines (EC) |
€32.3 million
|
In October 2014, the European Commission (“EC”) found that four international banks operated a cartel on bid-ask spreads of Swiss franc interest rate derivatives . Interest rate derivatives (e.g. forward rate agreements, swaps, futures, options) are financial products that are used by banks or companies for managing the risk of interest rate fluctuations. The so-called “bid-ask spread” is the difference between the price at which a market maker is willing to sell and to buy a given product. The EC’s investigation disclosed that between May and September 2007, the participants agreed to quote to all third parties wider, fixed bid-ask spreads on certain categories of short term over-the-counter Swiss franc interest rate derivatives, whilst maintaining narrower spreads for trades amongst themselves. The EC imposed monetary fines against participating banks.
Enforcement Highlights:
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The EC imposed fines totaling more than €32.3 million on four international financial institutions.