By Brazil Stock Guide – Brazil’s antitrust regulator Cade has approved seven Cease and Desist Agreements (TCCs) with Nomura International, Standard Chartered Bank, BofA Securities, Credit Suisse and MUFG Bank, as well as two former executives, in an investigation into the manipulation of exchange rates and spreads in the offshore foreign-exchange market. The regulator collected about BRL 80 million (US$14 million) in new settlements, bringing the total amount raised in the case to BRL 310 million (US$54 million).
The probe, launched in 2015, examined how global banks coordinated pricing and commercial conditions, manipulated exchange rates, and aligned trading strategies involving the Brazilian real between 2007 and 2013. The conduct extended to the spot FX market and Non-Deliverable Forwards (NDF BRL) — derivatives used for hedging and as benchmarks for spot transactions.
According to Cade’s investigative unit, the practices were facilitated through private chat rooms on Bloomberg terminals, where traders exchanged sensitive information and aligned quotes, spreads and client offers, undermining market competition. Nine prior agreements with other institutions and individuals had already generated BRL 235 million in payments to Brazil’s Fund for Diffuse Rights (FDD).
Cade Commissioner Victor Fernandes, the case’s rapporteur, said the agreements were “appropriate and sufficient to mitigate competitive risks and preserve the integrity of the analyzed market.” The banks and individuals admitted to the investigated conduct, agreed to cease the practices, and must pay their settlements within 90 days of the publication of the ruling in Brazil’s Official Gazette.
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