FX Traders Shunned as Banks Respond to FX Rates Investigation

FX traders at some of the world’s largest banks have been given the cold shoulder in response to the ongoing FX rates scandal. Reports in the UK’s national press have stated that traders at tier 1 banks have been suspended in connection with the rates investigation.

After the never-ending Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term fixing debacle, banks that thought they were off the hook were in for an unwanted surprise with the FX rates manipulation enquiry adding salt to their wounds.

Two of the UK’s leading banks, RBS and Barclays are thought to have suspended FX traders, as reported in Reuters and the BBC. Investigations have been in full force as regulators from across the developed world have been looking into the multi-billion issues.

The manipulation of rates could have detrimental effects on the world economy, as major instruments are priced on the back of FX rates or fixes. Furthermore, London’s role as the epicentre of global trade and finance could be questioned. The city hosts 40% of FX trading according to the latest BIS Triennial Survey.

Traders from Standard Chartered, JP Morgan and Citi are under investigation and have been put on leave, according to sources close to the matter.

“Government agencies in the U.S. and other jurisdictions are conducting investigations or making inquiries regarding trading on the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term markets. Citigroup has received requests for information and is cooperating with the investigations and inquiries and responding to the requests,” Citi said in a regulatory filing.