UK-based regulator, the Financial Conduct Authority (FCA), announced that it has officially joined the growing list of regulatory authorities investigating the latest debacle to affect the world’s most liquid asset class. In a brief notification on its website the FCA confirmed that it is investigating the FX rates manipulation matter.
The incident first came to light in a Bloomberg report on the 12th of June this year, which stated that traders were front running FX orders and the FCA was investigating the matter.
On the 4th of October the Swiss authorities came out and confirmed their investigation into the matter. A blow to the credibility of the OTC FX markets, which have been battling against other asset classes to gauge status as a genuine tradable financial instrument.
Royal C Bank on Why Crypto is Still the Name of the GameGo to article >>
A written statement issued by the regulator today said: “We can confirm that we are conducting investigations alongside several other agencies into a number of firms relating to trading on the foreign exchange (forex) market.”
“As part of this we are gathering information from a wide range of sources including market participants. 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. “
The FX issue comes after banks were caught out in the LIBOR fixing scandal. The perpetrators behind the current dilemma could face strong legal action as the manipulation is expected to have duped clients (of banks), resulting in considerable monetary value.
The regulator added that it appreciates the sensitivity of the matter and concluded: “We will not comment further on our investigations.”