Embattled Swiss banking giant UBS AG, has suspended at least four forex traders in the United States, Singapore and Switzerland following an ongoing probe into the rigging of currency markets and rates.
Despite UBS’ recent bid for immunity from US and EU regulators over its involvement in a currency rigging scandal, the most recent news of FX trading suspensions casts fresh light on a litany of violations and abuses that has enveloped the entire industry. UBS was said to have suspended emerging markets spot trader Onur Sert, and at last three others across Switzerland and Singapore, according to a Bloomberg report – the fates of these traders are ultimately pending the results of an ongoing investigation.
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Latest String of Suspensions
Indeed, the move is a direct parallel to other banking institutions, such as Deutsche Bank and Citigroup, both of whom have taken internal action in the aftermath of a global investigation. A panel of international regulators has been working for over half a year to ascertain more details on the manipulation of the WM/Reuters rates, a benchmark composite that was the repeated target of collusion via chatrooms, voice-based trading and phone conversations. The flaws and vulnerabilities present in these methods underscore a need to switch over to more electronic and transparent means of trading and oversight, an initiative that thus far is largely incomplete.
The recent actions taken by UBS suggest the probe is nowhere near completion, with many banks conducting internal investigations in accordance with regulatory commissions. US-based Sert has previously been employed with Standard Chartered Plc. – this is not the first suspension for UBS, as last year the banking entity also suspended its co-chief dealer Niall O’Riordan. Forex Magnates’ researchers reached out to multiple spokesmen at UBS who were unavailable to comment.