Report : UBS, BNP, RBS Receive Subpoenas In U.S. Treasuries Probe

(RTTNews) - Federal prosecutors have subpoenaed several banks as part of a criminal investigation into possible manipulation of the U.S. Treasuries market, Bloomberg reported citing people familiar with the matter.

UBS Group AG (UBS), BNP Paribas SA (BNPQY.PK, BNP.L) and the Royal Bank of Scotland Group Plc (RBS, RBS.L) received subpoenas last month seeking information on the $14 trillion market. New York-based Morgan Stanley (MS) has also received a subpoena, the report said.

The Justice Department has been examining the U.S. Treasuries market for roughly two years. In November 2015, Goldman Sachs Group Inc. disclosed that U.S. authorities had sought information related to its trading of when-issued securities, which are among the least transparent instruments in the world's largest debt market.

When-issued securities act as placeholders for bills, notes or bonds before they're auctioned. The instruments change hands over the counter, with lifespans of just days. There's scant public information on trading volumes or the market's biggest players.