Final Report of the Hearing Officer (1)

Swiss Franc Interest Rate Derivatives

(CHF LIBOR)

(AT.39924)

(2015/C 72/06)

On 24 July 2013, the European Commission (‘Commission’) initiated proceedings pursuant to Article 11(6) of Regulation (EC) No 1/2003 (2) against The Royal Bank of Scotland Group plc, The Royal Bank of Scotland plc (‘RBS’), JPMorgan Chase & Co, and JPMorgan Chase Bank National Association (‘JPMorgan’) (together ‘the Parties’).

Following settlement discussions and settlement submissions in accordance with Article 10a(2) of Regulation (EC) No 773/2004 (3), the Commission adopted a Statement of Objections (‘SO’), on 23 September 2014, stating that RBS and JPMorgan had participated between 6 March 2008 and 13 July 2009 in an infringement of Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement.

The infringement concerns the market for Swiss Franc Interest Rate Derivatives (‘CHIRDs’). According to the SO the Parties engaged in anticompetitive practices which constituted an interrelated string of occurrences united by the common objective of the restriction and/or distortion of competition in the CHIRDs sector. To this end, the Parties discussed CHF Libor submissions in the understanding that this might be beneficial to the CHIRDs trading position of at least one of the traders involved in the communications. These discussions were occasionally complemented by an exchange of information concerning current and future trading positions and intended prices.

The Parties’ respective replies to the SO confirmed that the SO addressed to them reflected the contents of their settlement submissions.

Pursuant to Article 16 of Decision 2011/695/EU, I have examined whether the draft decision addressed to the Parties deals only with objections in respect of which the Parties have been afforded the opportunity of making known their views, and I have come to a positive conclusion.

In view of the above, and taking into account that the Parties have not addressed any requests or complaints to me (4), I consider that the effective exercise of their procedural rights in this case has been respected.

(1)  Pursuant to Articles 16 and 17 of Decision 2011/695/EU of the President of the European Commission of 13 October 2011 on the function and terms of reference of the hearing officer in certain competition proceedings (OJ L 275, 20.10.2011, p. 29).

(2)  Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ L 1, 4.1.2003, p. 1).

(3)  Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty (OJ L 123, 27.4.2004, p. 18).

(4)  Under Article 15(2) of Decision 2011/695/EU, parties to the proceedings in cartel cases which engage in settlement discussions pursuant to Article 10a of Regulation (EC) No 773/2004, may call upon the hearing officer at any stage during the settlement procedure in order to ensure the effective exercise of their procedural rights. See also paragraph 18 of Commission Notice 2008/C 167/01 on the conduct of settlement procedures in view of the adoption of Decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) No 1/2003 in cartel cases (OJ C 167, 2.7.2008, p. 1).