The US Department of Justice (DoJ) is reported
to have launched an investigation into possible antitrust
violations in the market for supranational, sovereign and agency
bonds (SSA bond market) which has been valued at
USD 9 trillion or more.
The investigation is reported to be focused on whether London-based
traders violated fraud or antitrust laws, primarily before 2014, by
coordinating with each other before deciding who would offer price
quotes to potential buyers and sellers.
The investigation is said to be an early stage, and to concern
secondary markets rather than bond issuance.
The identity of the firms that are being investigated is not yet in
the public domain. As in other recent investigations in the
financial sector, online chat-room communications appear to be a
particular focus of the authorities.
In such cases, scrutiny by one or more competition or regulatory
authorities may trigger investigations by other authorities, and
self-reporting obligations may also arise. For example, a firm must
notify the UK Financial Conduct Authority if it has or may have
committed a significant infringement of any applicable competition
law.
Originally published on 11 December 2015
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