Citi, HSBC, Morgan Stanley, And RBC Face Fines For Sharing UK Bond Prices
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UK watchdog, the Competition and Markets Authority (CMA) has ordered HSBC, Citi, the Royal Bank of Canada, and Morgan Stanley to pay £104.5 million for revealing private data on UK bonds between 2009 and 2013.
The regulator charged these banks and Deutsche Bank in May 2023 for breaking competition rules. The traders talked in online Bloomberg chatrooms and shared details about the cost of United Kingdom government bonds, including gilts and gilt asset swaps.
Deutsche Bank Was Not Fined Because It Admitted The Wrongdoing
According to the update, Deutsche Bank was not fined because it admitted to the wrongdoing and followed the leniency policy. Citi also accepted the charges and received a lower fine. The four banks reached an agreement with the regulator.
A Citi spokesperson stated that the bank is pleased to settle the issue with the regulator, which happened more than ten years ago. The spokesperson said the bank worked with the regulator and would continue to follow the rules.
Deutsche Bank noted in a statement that it had told the UK watchdog about the issue and had helped in the investigation.
The CMA shared details of the fines, including reductions for cooperation: Citi £17.16 million, HSBC £23.4 million, Morgan Stanley £29.7 million, and Royal Bank of Canada £34.2 million.
Juliette Enser, the Executive Director for competition enforcement at the CMA said the regulator worked with the banks and is pleased to settle the five cases. She stated that the financial sector was important for the UK and needed fair rules and strong competition would help businesses and investors grow and bring benefits to the country.
Financial regulators in the United Kingdom revealed that they would support the CMA as it investigates Apple and Google’s mobile systems.
The CMA Is Investigating Apple And Google’s Control Over Mobile Systems
Last month, the authority reported that it was investigating if Apple and Google had too much control over their mobile systems, including app stores, operating systems, and browsers. The review also covers how the companies handle mobile wallets.
The Payment Systems Regulator and Financial Conduct Authority have been studying how top technology firms are growing in digital wallets.
According to the update, the use of digital wallets for card payments grew from eight per cent in 2019 to 29% in 2023. More people used digital wallets in stores, and by 2023, about 20% of card users paid with digital wallets for over half of their transactions. Around 10% used them for more than 75% of their payments.
The financial regulators asked for feedback on the matter in July and shared the responses. In the feedback, many people raised concerns about Apple’s past limits on NFC technology. Respondents also pointed out that Apple and Google controlled their mobile systems, which helped them push users toward their own wallets.
Another concern was the lack of choice in wallets, as they mostly allow card payments and not other types like stablecoins, account-to-account transfers, or future central bank digital currencies.
