EU: Interest Rate Derivatives Cartel – HSBC Fined

Jan 10, 2025 Benn-Ibler Rechtsanwälte

Euro interest rate derivatives: The European General Court (GC) has confirmed the EU Commission’s revised decision against HSBC, imposing a fine of EUR 31.7 million for participating in a euro interest rate derivatives cartel.

Interest rate derivatives are contracts between two or more parties, whose value is determined by the movement of a specified interest rate or group of interest rates.

The case at hand goes back to a decision adopted by the Commission in December 2016. In that decision, the Commission found that Crédit agricole, HSBC, and JPMorgan Chase had participated in a single and continuous infringement aimed at restricting and/or distorting competition in the euro interest rate derivatives sector. For this infringement, the Commission imposed a fine of several million euros. In 2019, the GC annulled this decision, finding that the Commission failed to state sufficient reasons. The Commission then reduced the fine in June 2021.

Some time thereafter, HSBC brought an appeal against the reduced fine. This was initially stayed pending the GC’s decision on the bank’s appeal against the original fine. The GC then upheld the annulment of the original fine. In its judgment, the GC has now dismissed HSBC’s appeal against the reduced fine.

Due to the statute of limitations, the imposition of the reduced fine was not inadmissible.

In the GC’s view, the limitation period for the power to do so had been suspended until the decision of the CJEU after the Commission’s appeal against the 2019 judgment.

According to the Court, the Commission’s lodging of an appeal had the effect of suspending the limitation period for its power to impose fines until such time as the Court had given a final judgment in the case.

No suspension occurred when the Commission took steps to adopt a new decision following the judgment of the GC.

Case T-561/21 (27 November 2024)