22 October 2017
visit www.response.ncr.com

EC charges banks, Isda and Markit in CDS investigation

01 July 2013  |  5776 views  |  0 EU flag

EC regulators say that 13 investment banks, the International Swaps and Derivatives Association (Isda) and Markit breached antitrust rules by colluding to prevent exchanges from entering the credit derivatives business.

Between 2006 and 2009, Deutsche Börse and the Chicago Mercantile Exchange tried to enter the credit derivatives business, turning to the Isda and Markit to obtain necessary licenses for data and index benchmarks.

However, according to the EC's preliminary findings, the banks controlling these bodies instructed them to license only for OTC trading purposes and not for exchange trading. Several banks also sought to shut out exchanges in other ways, for example by coordinating the choice of their preferred clearing house.

The Commission says that it takes the preliminary view that the banks "acted collectively to shut out exchanges from the market because they feared that exchange trading would have reduced their revenues from acting as intermediaries in the OTC market".

The parties have been sent a statement of objections and now have the opportunity to defend themselves. If the EC then concludes that there is sufficient evidence of an infringement, it can issue a decision prohibiting the conduct and impose a fine of up to 10% of a company's annual worldwide turnover.

The 13 banks are Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Royal Bank of Scotland and UBS.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Commission extends CDS anti-trust probe to Isda

Commission extends CDS anti-trust probe to Isda

26 March 2013  |  4189 views  |  0 comments | 1 tweets
EC launches antitrust probe into CDS market

EC launches antitrust probe into CDS market

03 May 2011  |  10473 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comvisit www.atos.netRegister now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
13273 views comments | 17 tweets | 28 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
12280 views comments | 22 tweets | 28 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9555 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
9167 views comments | 11 tweets | 22 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8576 views comments | 9 tweets | 18 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job