| Code | DS/UK/54 |
| Corporate Name | Sarabex Ltd |
| Dates | 1974 - ? |
| Activity | Sarabex Ltd was incorporated in January 1974 to engage in foreign exchange and currency broking in London. It began trading in London on 1 April 1974. In August 1977, Sarabex formally requested the Commission of the European Communities to initiate proceedings in respect of infringements of the provisions of Articles 85 and 86 of the EEC Treaty, concerning arrangements between the Foreign Exchange and Currency Deposit Brokers’ Association (FECDBA), the British Bankers’ Association (BBA) and their respective individual members. Sarabex was not a member of the Foreign Exchange and Currency Deposit Brokers’ Association (FECDBA), and it alleged that restrictive agreements and/or concerted practices operated between the FECDBA, the BBA and their respective members by virtue of the rules of the FECDBA and of specific letters dated 6 December 1967 (the ‘Stirling letter’) and 30 July 1975 (the ‘O'Brien letter’).
Amongst Sarabex's contentions, were claims that the arrangements between the FECDBA, the BBA and their members effectively eliminated competition in commission rates in foreign exchange and currency deposit broking, and excluded from the London market Sarabex and other firms of brokers from any Member State, which were not already a member of the FECDBA. Following an investigation by the Commission, the Bank agreed to modify the system for admission of brokering houses to both the foreign exchange and currency deposit market. The Bank also introduced a new structure for commission rates. Both these changes were in place by January 1979.
In March 1979, Sarabex had their application to become a recognised Foreign Exchange Broker in the London market refused by the Bank. However, in August of the same year, following changes in senior management and an agreement to certain amendments to their proposals, Sarabex was added to the list of Recognised Brokers.
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