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FCA launches investigation into forex trading
by Daniel Grote on Oct 17, 2013 at 07:50
The Financial Conduct Authority (FCA) has launched an investigation into potential bank rigging of the foreign exchange market.
In a statement, the FCA confirmed that it was ‘conducting investigations alongside a number of other agencies both in the UK and abroad into a number of firms relating to trading on the foreign exchange market’.
‘As part of this we are gathering information from a wide range of market participants,’ it added. ‘Our investigations are at an early stage and it will be some time before we conclude whether there has been any misconduct which will lead to enforcement action.’
News of the investigation follows reports from Bloomberg that traders at some banks may have pooled information about their positions through instant messages and used client orders to move benchmark currency rates.
Bloomberg said that Royal Bank of Scotland (RBS) had handed over records of messages. ‘We can confirm that we were contracted by the FCA on this matter,’ an RBS spokeswoman told the newswire. ‘Our ongoing enquiry into this matter continues and we are cooperating fully with the FCA and our other regulators.’
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