Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC closes proceedings against investment banks in credit default swaps investigation, (Dec 4, 2015)
Organizations Mentioned:BNP Paribas, SA | Bank of America Merrill Lynch | Credit Suisse | International Swaps and Derivatives Association | J.P. Morgan
By Linda O’Brien, J.D., LL.M.
The European Commission (EC) has closed antitrust proceedings against all 13 investment banks involved in its investigation into the credit default swaps market. The investment banks involved in the investigation were Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Royal Bank of Scotland, and UBS, the EC announced today.
In July 2013, the Commission adopted a Statement of Objections against data service provider Markit, the International Swaps and Derivatives Association (ISDA), and 13 investment banks. The Statement of Objections raised preliminary concerns that all parties had coordinated to foreclose from the credit default swaps market Deutsche Börse in 2007 and Chicago Mercantile Exchange in 2008. The closure decision regarding the investment banks was based on a thorough analysis of all information received from the parties in their replies and during the oral hearing of May 2014, as well as on documents obtained through additional fact finding. The evidence was not sufficiently conclusive to confirm the Commission’s concerns with regards to the 13 investment banks.
The closure does not prejudge the outcome of the EC’s investigation regarding Markit and ISDA, which is ongoing. The Commission will also continue monitoring the practices of investment banks in financial markets, including in the credit default swaps sector.
News: Antitrust