EU antitrust regulators investigate precious metals trading

By Foo Yun Chee

BRUSSELS, Aug 25 (Reuters) - European Union antitrustauthorities are investigating possible anti-competitivepractices in precious metals trading as they joined otherregulators in a crackdown on possible rigging of the markets.

The European Commission's action follows a record 1.7billion euro ($1.9 billion) fine against six financialinstitutions in 2013 for manipulating Libor and Euribor interestrate benchmarks.

Regulators on both sides of the Atlantic are alsoinvestigating suspected rigging of the foreign exchange market.

"The Commission is currently investigating allegedanti-competitive behaviour in precious metals spot trading inthe European Economic Area (EEA)," Commission spokesman RicardoCardoso said in an email.

He did not name the banks. The EEA refers to the 28-countryEuropean Union, plus Iceland, Liechtenstein and Norway.

HSBC said this month that various regulators, competitionand law enforcement authorities in the US and the EU wereinvestigating its precious metals operations.

"In April 2015, the European Commission issued a request forinformation seeking certain information related to HSBC'sprecious metals operations. HSBC is cooperating with theauthorities," it said.

It said it was unable to predict the timing of anyresolution and the impact on the bank, which it said "could besignificant."

Britain's Financial Conduct Authority, Germany's Bafin andSwitzerland's FINMA are also looking into precious metalstrading and commodity benchmarks.

British bank Barclays said in March that it hasprovided information to the U.S. Department of Justice relatedto its precious metals activity. ($1 = 0.8715 euros) (Additional reporting by Steve Slater in London; Editing byKeith Weir)