Commission settles Swiss franc antitrust probes: Several banks have agreed to settle fixing cases related to Swiss franc interest rate derivatives. The findings were that: 

  • JP Morgan and RBS participated in a cartel aimed at influencing the Swiss franc LIBOR rate. The prohibited behaviour consisted of discussions on rate submissions and exchanges of trading information; and
  • UBS, JP Morgan, Crédit Suisse and RBS participated in a cartel consisting of agreements to quote wider, fixed bid-ask spreads for certain OTC Swiss franc interest rate derivatives while maintaining narrower spreads for trades among them. 

RBS has not been fined because it tipped off to the Commission the existence of both cartels. JP Morgan's fine for LIBOR manipulation amounts to €61,676,000, including a 40% reduction for co-operation and early settlement. The three fines for the bid-ask spread fixing total €32,355,000, also following reductions for co-operation and early settlement. This is the third set of settlements the Commission has extracted as a result of its investigations of anti-competitive behaviour in rates and benchmarks setting. It had previously fined several banks in relation to Euro and Yen interest rate derivatives. (Source: Antitrust: Commission Settles RBS-JP Morgan Cartel)

Commission adopts resolution fund contributions rules: The Commission has adopted:

  • the Delegated Act laying down the method for calculation of the contributions that banks need to make to their national resolution funds under the Bank Recovery and Resolution Directive (BRRD). This will consist of a fixed part based on the size of a bank's liabilities and a variable part subject to the assessment of each bank's risk. A lump-sum regime will be available for small banks; and
  • a draft proposal for a Commission Implementing Act in respect of the contributions that banks authorised within the Banking Union will have to make to the single, pooled resolution fund introduced by the Single Resolution Mechanism Regulation. The calculation mechanics under this draft Act are similar to those applying to non-Banking Union banks. 

Both Acts set the target level of the relevant resolution funds at at least 1% of the amount of covered deposits of the institutions contributing to each fund. (Source: Commission Adopts Resolution Fund Contributions Rules)