CADE collects around BRL 80 million in cases involving offshore currency market

On 22 October, the Administrative Council for Economic Defense (CADE) ratified seven cease and desist agreements related to alleged anticompetitive practices in the offshore currency market. They were signed by the companies Nomura International, Standard Chartered Bank, Bofa Securities, Credit Suisse, and MUFG Bank, as well as by two former employees of other companies, who admited their participation in the conduct. 

The investigation was launched in 2015, involving financial institutions operating globally. CADE examined agreements between banks to fix prices and trading conditions, manipulate exchange rates, and coordinate trading strategies in transactions involving the Brazilian currency. The violations happened between 2007 and 2013, involving foreign currencies, specifically in the Spot FX market, and Non-Deliverable Forwards (NDF BRL), used for currency hedging as well as a reference in Spot FX transactions. 

According to the SG, the conducts occurred through the exchange of competitively sensitive information in private chats on the Bloomberg platform, in which operators coordinated quotes, spreads and proposals to clients, restricting competition. 

During the discovery phase, CADE signed nine agreements with companies and individuals, that are to pay approximately BRL 235 million in financial contributions for the Fund for De Facto Joint Rights (FDD).  After the execution of the seven new agreements, the amounts totalled over BRL 310 million. 

According to Commissioner Victor Fernandes, rapporteur for the case, the proposals presented and the commitments made by the parties were considered timely, appropriate and sufficient to mitigate competitive risks, and preserve the soundness of the market analysed. 

The financial institutions and individuals admitted their participation, agreed to cease the investigated practices, and to pay the contributions to the FDD in a single instalment within 90 days from the publication of the ratifications in the Federal Official Gazette of Brazil. Thus, the case will be stayed until the final decision. 

Complaints and agreements at CADE 

The antitrust authority provides various mechanisms for citizens, companies, and lawyers to cooperate with investigations, contributing through complaints and leniency agreements.

Anyone can file a complaint with information about anticompetitive practices such as cartels, bid rigging, price fixing, resale price maintenance, among others, through the Clique Denúncia platform, available on CADE’s website. It may be sent anonymously by selecting the option "I do not wish to identify myself". 

In addition, companies or individuals involved in illegal conduct may cooperate with investigations through a leniency agreement, which allows for exemption or reduction of penalties in exchange for the provision of relevant evidence and information. Access the Clique Leniência platform for more information. 

Your collaboration is essential to ensure free competition and a fairer market for all.