Tag: South Africa

South Africa

In the FICC of It

This week’s podcast kicks off with Colin Lambert discussing some of the feedback he received over his comments in the week’s column over the re-papering of trades post the SNB debacle in 2015. He does not, of course, miss the opportunity to drive home his argument that algos should have mandatory price limits, along the […]

South Africa Establishes FX Committee

The South African Reserve Bank has announced the establishment of the South African Foreign Exchange Committee.
The new committee reflects the make up of similar bodies elsewhere by building a forum consisting of key professionals and associations in the domestic wholesale FX market, such as Authorised Dealers, the Association of Corporate Treasurers of South Africa, the FX interdealer broker community, ACI South Africa, the Banking Association of South Africa, the Association for Savings and Investment South Africa as well as a representative of the Financial Services Board.

South Africa Adds Names to FX Charge Roster; Releases Transcripts

South Africa’s Competition Tribunal has added five names to the list of institutions it is charging with manipulation in rand (ZAR) markets. The country’s Competition Commission has brought the charges, which were first announced in February 2017 and in turn led to one of those charged – Citi – settling with the Commission by agreeing to pay a ZAR 69.5 million fine.
The five additional names released by the Tribunal are, in reality, just an extension of the existing charges to bring in subsidiaries for the five are HSBC USA, Merrill Lynch Pierce Fenner and Smith, Bank of America N.A., Investec Bank Limited, and Credit Suisse Securities (USA).

Citi Settles South African FX Manipulation Claim

Citi has become the first bank to settle with South Africa’s Competition Commission, paying the equivalent of a just over $5 million fine related to charges it participated in a cartel that manipulated prices in the rand.
The Commission found that from at least 2007, Citi and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving USD/ZAR. The Commission last week charged 14 banks with collusion.

South Africa Sues Banks over FX Collusion

South Africa’s Competition Commission says it is commencing prosecution proceedings against 14 banks over alleged collusion in ZAR markets.
The Commission has been investigating the issue since April 2015 and says it has now referred the case to the country’s Tribunal for prosecution.
The banks are Bank of America Merrill Lynch; BNP Paribas; JP Morgan; Investec; HSBC; Standard Chartered Bank; Credit Suisse; Standard Bank of South Africa; Commerzbank; ANZ; Nomura International; Macquarie Bank; ABSA Bank; and Barclays.
In some cases the case is being brought against two entities with the same organisation, if found guilty, the banks could face fines of up to 10% of their annual turnover.

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