Price setting in over-the-counter interest rate dePrice setting in over-the-counter interest rate derivatives and its classification as a collusive conduct under Articles 1 LDC and 101 TFEUrivatives and its classification as a collusive conduct under Articles 1 LDC and 101 TFEU

Abstract

In its Resolution of February 13, 2018,  S/DC/0579/16, Spain’s  Competition Authority (CNMC) sanctions four banks for a very serious infringement of Article  1 of  the  Law  on  the  Defense  of  Competition (LDC)  as  well as  Article  101 of  the  Treaty  on  the  Functioning of  the  European Union (TFEU)  for  a concerted action in setting  prices above market conditions in over-the-counter interest  rate derivatives. This  paper addresses  the potentially anti-competitive aspects  associated with the contracting of over-the-counter interest  rate derivatives, as identified by the CNMC,  and  the  interpretative difficulties presented by the  Resolution.