Following an investigation by the Competition and Markets Authority (CMA), traders were found to be exchanging details about the price of gilts and gilt asset swaps.
The banned discussions by traders took place on a Bloomberg chatroom between 2009 and 2013.
All four of the banks have promised the behaviour – which harms the competition of the bond market – will not happen again.
To maintain the best competition in the market, banks must decide their price and strategies independently and not after corroboration with fellow traders.
Gilts are used by investors to lend money to the UK Government in exchange for a “steady and stable” stream of cash interest payments, according to the CMA.
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The fines, which need to be paid by 22 April, were divided as follows:
- Citi: £17,160,000
- HSBC: £23,400,000
- Morgan Stanley: £29,700,000
- Royal Bank of Canada: £34,200,000
‘Essential’ economy functions effectively
Juliette Enser, executive director of competition enforcement at the CMA, said: “Following constructive engagement between the banks and the CMA, we are pleased that we have been able to settle these five cases involving the past sharing of competitively sensitive information about pricing.
“The financial services sector is an integral part of the UK economy, contributing billions every year, and it’s essential that it functions effectively. Only through healthy and competitive markets can we ensure businesses and investors have confidence to invest and grow – for the benefit of all in the UK.”
Enser added: The fines imposed today reflect the CMA’s commitment to dealing with competition law breaches and deterring anti-competitive conduct. The fines would have been substantially higher had the banks not already taken unusually extensive steps to make sure that this doesn’t happen again.”
