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MEXICO – According to a government document and a source, one of the largest investigations in the sector since the financial crisis, the Mexican banking regulator has fined several major banks and operators for having simulated transactions to increase volumes bond trading.
Fines were notified to Citigroup, Citibanamex, Spanish BBVA Bancomer, British Barclays, Swiss Credit Suisse and German Deutsche Bank, according to the document seen by Reuters.
Fines for banks, eight operators and two brokers amounted to more than $ 1 million, according to a government source directly familiar with the subject.
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Sanctioned persons may appeal fines.
In response to Reuters' questions, Citibanamex said in a statement that it was aware of the fines and that it was evaluating a possible appeal. Barclays, Credit Suisse and Deutsche Bank declined to comment. BBVA Bancomer has not responded to a request for comment.
In the last decade, regulators in the United States, Britain and other countries have imposed multibillion-dollar fines on international banks for manipulating interest rates and markets. exchange.
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The investigation by the National Commission of Banks and Securities (CNBV) in Mexico has revealed no evidence of price manipulation, the source said. Although the simulated operations violate Mexican law, the source said the regulator was not seeking criminal prosecution.
The CNBV did not respond to a request for comment.
The survey revealed that traders had made trades previously traded through interbank trading companies in order to increase the apparent volume of transactions in government bonds, said the source, unauthorized to talk to the media and asking for anonymity. It was unclear what banks would gain from handling volumes, but entities must adhere to minimum volumes to be "market makers" or market managers.
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They also received fines against two interbank brokerage firms, Swiss Tradition and Mexican Enlace, according to the document. Tradition has not responded to a request for comment.
An Enlace spokesperson said in a statement that the company had received a CNBV notification for a transaction in 2013.
"We can not give more details on this because it is a permanent legal problem, but we think that the imposition of the fine is inadmissible, so let's go to to challenge, "he said.
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The CNBV opened its investigation into the players in the state bond market in Mexico last year, after the Federal Commission for Economic Competition (COFECE) announced the opening of a new bond market. an investigation into the possible manipulation of prices on the public debt market in pesos.
Cofece has until next year to disclose the results of its investigation into alleged monopoly practices in the bond market.
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