Banking stocks down 1 per cent after watchdog charges

The Competition Commission said it had concluded an investigation into whether banks colluded.

Stock Market

On Wednesday, South Africa’s competition watchdog had recommended fines against banks including Citigroup, Nomura and Standard Bank equal to 10 per cent of their annual revenues for rigging the rand currency, it said.

The Competition Commission said it had concluded an investigation into whether banks colluded by using an instant messaging chat room called “ZAR Domination”, to coordinate their trading activities when giving quotes to customers who buy or sell currencies.

ZAR is the code for the South African rand used in financial markets. The Commission did not say if the fines should relate to the global revenues of the banks in question or just their South African business.

The probe found that from at least 2007, traders at these banks had an agreement to collude on prices for bids, offers and bid-offer spreads for spot trades involving the rand and the US dollar, the Commission said. “They also created fictitious bids and offers, distorting demand and supply in order to achieve their profit motives,” the Commission said in a statement.

The Commission launched the investigation in April 2015, joining a global clampdown on

price-rigging in currency markets that has led to dozens of traders fired and big banks fined

around 10 billion dollars in total.

The Commission, which investigates anti-trust practices, said it had referred the case tothe Competition Tribunal for prosecution.

Other banks named in the case are Investec, JP Morgan, BNP Paribas, Credit Suisse Group, Commerzbank AG, Standard New York Securities Inc., Macquarie Bank, Bank of America Merrill Lynch, ANZ Banking Group Ltd., Standard Chartered Plc and Barclays Africa, part of the Barclays Plc.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Raila Odinga unveils his national campaign point men [Full List]

Raila Odinga unveils his national campaign point men [Full List]

Reprieve for billionaire Humphrey Kariuki as court quashes Sh17 billion tax case

Reprieve for billionaire Humphrey Kariuki as court quashes Sh17 billion tax case

 I'm not going for any elective post - Alfred Mutua addresses speculations

I'm not going for any elective post - Alfred Mutua addresses speculations

Green Park terminus: Payment of Sh650 million to pensioners delayed

Green Park terminus: Payment of Sh650 million to pensioners delayed

Kenya Air Force invites Kenyans to one-of-a-kind air show festival

Kenya Air Force invites Kenyans to one-of-a-kind air show festival

Igathe finally responds to viral memes

Igathe finally responds to viral memes

Sonko breaks silence over allegations of neglecting his 15-year-old daughter

Sonko breaks silence over allegations of neglecting his 15-year-old daughter

DPP comes to the rescue of shoplifter Alvin Chivondo

DPP comes to the rescue of shoplifter Alvin Chivondo

Somalia’s new President Sheikh Mohamud sworn into office

Somalia’s new President Sheikh Mohamud sworn into office