Cartel Digest

Interest Rate Derivatives (YIRD)

Interest Rate Derivatives (YIRD)
  Overall Cartel Period 2007-2010
  Participants UBS, RBS, Deutsche Bank, JP Morgan, Citigroup, RP Martin
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) €669.7 million
In February 2013, the European Commission (“EC”) opened proceedings on the cartels in Yen interest rate derivatives (YIRD). 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 JPY LIBOR submissions from 2007 to 2010.  The EC imposed monetary fines against participating banks.
Enforcement Highlights:
  • The EC imposed fines totaling more than €669.7 million on six international financial institutions. 
Company Fine Date
Citigroup € 70 million
Deutsche Bank € 259.5 million
JP Morgan € 79.9 million
RBS € 260.1 million
RP Martin € 200,000
UBS No fines imposed