The European Commission has fined HSBC, Crédit Agricole and JPMorgan Chase a total of €485m (£413m) for participating in a cartel in euro interest rate derivatives in the final stage of an investigation into alleged fixing of the Euro Interbank Offered Rate (EURIBOR) benchmark
The banks colluded on euro interest rate derivative pricing elements, and exchanged sensitive information, in breach of EU antitrust rules. HSBC’s fine is £33m, less than the other two banks, on the basis its participation was more limited.
The Commission has previously reached a settlement in the same cartel case with two other UK banks, Barclays and RBS, who agreed terms in December 2013 along with Deutsche Bank and Société Générale.
Its investigation found that there was a cartel in place between September 2005 and May 2008, involving the seven banks over varying time periods and covering the whole European Economic Area (EEA).
The participating traders of the banks were in regular contact through corporate chat-rooms or instant messaging services. The traders' aim was to distort the normal course of pricing components for euro interest rate derivatives. They did this by telling each other their desired or intended EURIBOR submissions and by exchanging sensitive information on their trading positions or on their trading or pricing strategies.
Commissioner Margrethe Vestager, in charge of competition policy, said: ‘A sound and competitive financial sector is essential for investment and growth. Banks have to respect EU competition rules just like any other company operating in the single market.’
