Canada’s Competition Bureau has dropped its investigation into possible collusion in the setting of LIBOR, and subsequent derivatives pricing, concluding that there was insufficient evidence of a criminal conspiracy.
The competition regulator announced that it is “discontinuing its investigation of alleged collusive conduct” in the setting of Yen LIBOR rates and their use in pricing interest rate derivative products. The inquiry, which began in 2011, is being discontinued “because the evidence collected was insufficient to justify prosecution”, the Bureau said in a statement.
The regulator reports that it used its formal investigation powers, such as court orders, to obtain extensive evidence in the case, and that it insisted on compliance with the court orders. It also says that it conducted “an exhaustive review” of the evidence obtained in the investigation to determine whether a violation of the criminal conspiracy provisions had occurred.
“This provision required proof of significant anti-competitive economic effects,” it notes. Moreover, it says that, as competition laws differ, “conduct that does not constitute an offence in Canada may constitute an offence in other jurisdictions.”