Allegations Of Currency Market Manipulation Being Investigated By A UK Agency

It is reported by the Guardian that the UK Serious Fraud Office is examining information about the possible manipulation of the global currency market.  The same report says that authorities around the world are already investigating allegations of manipulation in the $5tn a day foreign exchange market. Among those looking into the claims is the US justice department, which launched a criminal investigation last October.

Authorities in US, UK, Germany, Switzerland and Singapore are investigating whether traders from the different banks cooperated or work together to influence the currency market prices. Globally, about 35 people in the currency markets have been suspended, placed on leave or fired by financial institutions, which are also investigating allegations of wrongdoing internally. None have yet been charged with any wrongdoing. The investigations, which are being run in parallel with an inquiry into alleged fixing of benchmark interest rates, show banks are still struggling to control some trader behavior despite tighter regulatory scrutiny following the 2008-2009 financial crisis. You can read the whole Guardian article here.

A dozen regulators around the world are investigating claims that more than 15 banks colluded to rig forex markets as reported by Independent as well. The Treasury and the UK’s financial regulators have signalled their intention to clampdown on the £3.1-trillion-a day foreign exchange market in the wake of the abuse allegations that have hit confidence in currency benchmarks.