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#1 28-05-2019 09:55:58

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 3068
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Essex Express: 5 banks fined 1 billion for collusion on forex market

Essex Express: 5 banks fined 1 billion for collusion on the forex market


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5 banking institutions have been fined over 1 bil. This penalty was levied due to their unlawful collective manipulation of the forex market.

Europe's Commission, which levied the penalty, recently said that Barclays, RBS, MUFG, Citigroup and JP Morgan jointly operated 2 "cartels".

The Commission added that the banking institutions manipulated pricing on 10 major currencies, such as the CHF, the GBP and the USD.

The Commission split the penalties in half, explaining that there are 2 "cartels" that were active, and that a few of the banking institutions were involved in the 2 cartels.

The heaviest penalty - more than 810 mil. ($908 mil.) - was levied against Barclays, RBS, Citigroup and JP Morgan for conducting a cartel known as the "3-way Banana Split".

Meanwhile, a collusion known as the Essex Express, which included Barclays, RBS and MUFG Bank, lead to a penalty of nearly 258 mil. ($288 mil.).

These weird names originated in chatrooms where the various banking institutions' traders exchanged information with each other.

The Commission says that the traders participated in these discussions to talk about customer orders, spreads, and other information about pending or active trades.

"The forex is one of the biggest global markets, where billions of dollars are traded daily," says Margaret Vesager (EU Commission).

"Barclays, The Royal Bank of Scotland, Citigroup, JPMorgan and MUFG Bank have now been heavily fined, and this will hopefully send the message that we will not tollerate such illegal behaviour in the forex market. The actions of these banking institutions have harmed the market's integrity, thereby harming the entire EU community and its citizens."

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