The Australian Securities and Investments Commission's cases against ANZ Bank, National Australia Bank and Westpac for the alleged rigging of the bank bill swap rate could be heard together in a trial that may extend into 2018.Â
However, rather than having the three cases heard simultaneously, Federal Court Justice Jonathan Beach is considering hearing the matter in four phases.
In this scenario the first phase would see the three banks and ASIC fight it out over shared issues including whether the bank bill swap rate can even be manipulated.Â
The second, third and fourth phase would deal with ASIC's case against each of the banks separately.Â
"I'm attracted to the idea of saying I do intend to have the trial conducted in these four phases but at the moment I can't articulate the common issues. Secondly I can't work out questions of cross admissibility," Justice Beach said.Â
"I do intend to set a September 25 trial date."Â
Justice Beach said he expected the trial to take 12 weeks.
Justice Beach made no official orders as to how the case will be run at Friday's hearing.Â
A twelve-week trial could take the matter until late December next year. Any delays will see the trial extended into the following year.Â
The court also heard ASIC was yet to receive from NAB audio recordings of key staff on its interest rate trading desks and other desks and that information would not be received until April next year, possibly giving ASIC less time to prepare its case against the bank.Â
Justice Beach also left open the possibility of NAB pushing the trial date out further because ASIC filed its case against NAB months after its cases against Westpac and ANZ.
​​ASIC has taken action against ANZ, NAB and Westpac for allegedly rigging the BBSW to increase banking profits. ASIC's investigation has drawn on email, telephone and chatroom discussions between the bankers to form its case.Â
ANZ, NAB and Westpac were hoping that each of the trials would be heard separately because they believe there is little common ground between the actions of its traders on different days.
All three banks deny the claims, with NAB recently describing ASIC's understanding of how the BBSW market works as "embarrassing" in its defence filed last month.Â
The bank bill swap rate, known as BBSW in financial markets, is a key rate at which banks lend to each other over short periods.
It is one of the most important interest rates in the economy, providing a benchmark for the setting of a range of business loan interest rates.
Another preliminary hearing will be held next week.