Commodity traders offer £1m to crisis fund after FCA competition probe

Following an investigation, the FCA is concerned 11 traders may have hindered competition in commodity futures markets and infringed competition law by exchanging potentially sensitive information about their trading and/or coordinating their trading strategies with each other.

The traders have proposed commitments to change the way they handle sensitive information, undertake annual competition law training and arrange a £1m ex gratia payment. The money will be given to the Crisis and Resilience Fund, which provides support to low-income families and individuals in financial hardship.

Graeme Reynolds, director of competition at the FCA said: 

'Competition law exists to ensure markets work well. We consider all competition concerns and, where appropriate, we investigate and take action.'

The individuals under investigation were day traders in global commodity futures markets. Day traders play an important role in maintaining competition by providing liquidity and absorbing risk from other participants. For the markets to be competitive, trading decisions on commodity futures must be made independently. 

The FCA has reached no view on whether competition law has been breached. Offering commitments does not amount to an admission of competition law infringement and the traders have made no such admission in this case.

The FCA considers the commitments offered by the traders address the competition concerns it identified. The financial commitment is likely to exceed any penalty the FCA could impose on the individuals following any infringement finding. Under competition law, financial penalties are capped by reference to the turnover of an individual or business in the financial year before any infringement decision. 

The FCA is consulting on the commitments package before reaching a final decision on whether to accept it and close the investigation.  

Notes to editors

1. Read the Notice of Intention to Accept Commitments (PDF)[1].
2. The consultation is now open and ends 14 July 2026.
3. To speak with the FCA on the proposed commitments, please email: [email protected].
4. Under the Competition Act 1998, firms under FCA investigation may offer binding commitments to address competition concerns. The FCA may accept them if satisfied the commitments address competition issues, after consulting affected third parties.
5. Accepting commitments does not mean a breach has occurred, and no admission of infringement is made.
6. Under the Competition Act 1998, the maximum penalty imposed on a firm or individual found to have infringed the Competition Act 1998 is capped at 10% of that firm or individual’s turnover in the year preceding any infringement decision.