Regulator: Taxpayers could have been ripped off by chatting bank traders

CHRIS DORRELL AND STAFF

TRADERS at five of the world’s biggest banks shared “commercially sensitive” data related to the purchase and sale of UK government bonds in Bloomberg terminal chats, the UK’s competition watchdog has provisionally found.

A “small number” of staff at Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada shared information which, the competition watchdog says, could have “denied the full benefits of competition” to sellers of UK gilts.

Deutsche Bank reported its involvement to the Competition and

Markets Authority (CMA), with the activity occurring between 2009 and 2013. Citi then also applied for leniency as part of the CMA’s investigation, effectively admitting to wrongdoing.

As such Deutsche will not be fined and Citi’s fine will be mitigated, if the CMA makes a final decision.

HSBC, Morgan Stanley and Royal Bank of Canada have not admitted any wrongdoing. No assumption should be made that any of the banks have broken the law.

A HSBC spokesperson said it “refutes the CMA’s allegations” and “will continue to make our case to the CMA as appropriate whilst we await a final decision.”

The contract is said to relate to the sale of gilts by the UK Debt Management Office via auctions on behalf of HM Treasury, the subsequent buying and selling of gilts and gilt asset swaps, and buyback auctions of gilts by the Bank of England.