Cartel Digest

Interest Rate Derivatives (EIRD)

Interest Rate Derivatives (EIRD)
  Overall Cartel Period 2005-2008
  Participants EIRD: Barclays, Deutsche Bank, Société Générale, RBS
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) €1 million
In October 2011, the European Commission (“EC”) initiated its investigation into cartel conduct in the Euro interest rate derivatives industry (EIRD) and opened proceedings in March 2013. Interest rate derivatives (e.g. forward rate agreements, swaps, futures, options) are financial products which are used by banks or companies for managing the risk of interest rate fluctuations. They derive their value from the level of a benchmark interest rate that reflects an average of the quotes submitted daily by a number of banks who are members of a panel (panel banks) which are meant to reflect the cost of interbank lending in a given currency. According to the EC, the collusion included discussions between traders of the participating banks on the EURIBOR submissions between September 2005 and May 2008. The EC imposed monetary fines against participating banks.
Enforcement Highlights:
  • The EC imposed fines totaling more than €1 billion on four international financial institutions. 
Company Fine Date
Deutsche Bank € 465.9 million
RBS € 131 million
Société Générale € 445.9 million
Barclays No fines imposed