European Union regulators have issued fines for four major banks, after an investigation revealed they colluded in a foreign exchange spot trading cartel using an online chatroom called “Sterling Lads.”
The combined sum of the fines totalled nearly $400 million, with HSBC receiving the most heftiest punishment of $197 million, followed by Credit Suisse, Barclays, and NatWest. According to a years-long European Union investigation, the cartel engaged in forex spot trading of a number of G10 currencies, including the US dollar, the Euro, and the UK pound.
Using an online chatroom dubbed “Sterling Lads,” traders exchanged sensitive information in order to make knowledgable decisions regarding the buying and selling of the currencies. “Foreign exchange spot trading activities are one of the largest financial markets in the world. The collusive behaviour of the five banks undermined the integrity of the financial sector at the expense of the European economy and consumers,” said the European Union competition chief Margrethe Vestager.
The European Commission refrained from fining UBS Group as it initially brought attention to the collusion between the other banks.
Information for this briefing was found via the European Commission. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.