The regulator said that traders ran two cartels on online chatrooms, swapping sensitive information as well as trading plans that allowed them make informed decisions to buy or sell currencies.
Sunday 19, May 2019
(Bloomberg) --Citigroup, Royal Bank of Scotland Group (RBS) and JPMorgan Chase are among five banks that agreed to pay the EU fines of about EUR 1.07 billion ($1.2 billion) for colluding on foreign-exchange (FX) trading strategies.
The European Commission stated that Citigroup was fined EUR 310.8 million, RBS will pay EUR 249.2 million and JPMorgan’s penalty was EUR 228.8 million.
Barclays was fined EUR 210.3 million and Mitsubishi UFJ Financial Group is expected to pay around EUR 70 million.
Margrethe Vestager, EU Competition Commissioner, said, “Foreign exchange spot trading activities are one of the largest markets in the world, worth billions of euros every day, these cartel decisions send a clear message that the commission will not tolerate collusive behaviour in any sector of the financial markets.”
While large, the cartel fines are lower than a EUR 1.3 billion penalty for banks five years ago for rigging Euribor rates and below a record EUR 3.8 billion penalty for collusion between trackmakers.
UBS Group escaped a fine because it was the first to tell regulators about the collusion. The five banks won reduced penalties by striking a settlement with the EU that will not allow them challenge the EU’s findings.
Additionally, Credit Suisse Group was separately charged by the EU over foreign currency collusion last year and a fine may come at a later date.