US regulators have fined Barclays and four of its traders US $453 million for for allegedly price rigging US energy markets.
The US Federal Energy Regulatory Commission (FERC) had concluded that the bank and four of its traders had manipulated the index price to benefit Barclays’ trading positions.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The bank has to pay the fine within 30 days for manipulating electric energy prices in California and other western markets between November 2006 and December 2008, FERC said.
Barclays will also have to forgo $34.9 million in unjust profits, which will be distributed to low-income energy programmes in Arizona, California, Oregon, and Washington.
The FERC has ordered the four traders to pay penalties, comprising US$15 million and three smaller fines of US$1 million each.
The fine was initially proposed in October 2012, and has now been upheld by the body’s board of commissioners. The case will likely now move to a federal court.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFERC used emails between the traders to help build the case against Barclays.
The commission said: "FERC finds that their actions demonstrate an affirmative, coordinated and intentional effort to carry out a manipulative scheme."
However, Barclays said the penalty assessed by the FERC "is without basis", and stressed that the lender believes its "trading was legitimate and in compliance with applicable law".
Marc Hazelton, Barclay’s spokesman, said: "We have cooperated fully with the FERC investigation. We intend to vigorously defend this matter."
