Four Banks Settle UK Gilts Collusion Case For £104 Million

Four major banks have agreed to pay fines totaling £104 million to settle a case involving the collusion in the UK government bond market, also known as gilts. The Competition and Markets Authority (CMA) found that traders at Citi, HSBC, Morgan Stanley, and Royal Bank of Canada (RBC) unlawfully shared competitively sensitive information in one-to-one Bloomberg chatrooms between 2009 and 2013. Deutsche Bank, which self-reported its involvement, was granted immunity from fines.

The collusion involved the sharing of information related to the buying and selling of gilts and gilt asset swaps, as well as the 'buyback' process of selling gilts back to the Bank of England. This behavior could have denied the full benefits of competition to those they traded with, including pension funds, the UK Debt Management Office, and ultimately HM Treasury and UK taxpayers.

The fines were discounted due to the banks' cooperation and the extensive compliance measures they had implemented to prevent such behavior in the future. Deutsche Bank was granted immunity for reporting its involvement, while Citi received a 35% leniency discount and a 20% reduction for settling in advance of the CMA issuing its Statement of Objections. HSBC, Morgan Stanley, and RBC each received a 10% reduction for settling after the CMA issued its Statement of Objections.

Juliette Enser, Executive Director of Competition Enforcement at the CMA, stated that the fines reflect the authority's commitment to dealing with competition law breaches and deterring anti-competitive conduct. She also emphasized the importance of a properly functioning, competitive bond market for the benefit of taxpayers, pension savers, and financial institutions.



The CMA's investigation into suspected anti-competitive arrangements in the UK government bond market began in November 2018. In May 2023, the CMA published provisional findings that the banks had unlawfully shared competitively sensitive information. After considering further representations from the parties, the CMA reached a final decision, confirming the fines and the settlement agreements.

In conclusion, the settlement of the UK gilts collusion case demonstrates the CMA's commitment to maintaining a competitive and fair market for the benefit of all parties involved. The banks' cooperation and implementation of compliance measures contributed to the reduced fines, while the CMA's investigation process ensured that the banks were held accountable for their anti-competitive behavior.