FCA Pressed to Disclose More about FX Rate Manipulation Investigation
- The association for the Investment Management industry in the U.K. is petitioning the regulator to release additional information on its investigation into major banks allegedly rigging FX benchmark rates.
The Investment Management Association (IMA), which represents the U.K. investment management industry, is applying pressure on the Financial Conduct Authority (FCA) to release more information about its investigation into the alleged manipulation of the FX market.
The IMA wrote to the FCA in recent weeks, asking how it should respond to clients’ inquiries about whether currency markets are being rigged, but the FCA replied that it could not comment on a current investigation, as was reported by Bloomberg yesterday.
The IMA is a trade group representing the British investment management industry, whose members manage over £4.5 trillion of assets on behalf of U.K. and overseas clients. Today, the IMA confirmed to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates that they wrote to the FCA on the issue of FX currency manipulation.
The FCA announced in October that it is investigating an alleged FX manipulation, writing to Forex Magnates: “We can confirm that we are conducting investigations alongside several other agencies into a number of firms relating to 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 (forex) market.”
The investigations focus on Bloomberg terminal chat groups with names such as ”The Cartel” and “The Bandits’ Club,” where major banks' traders allegedly shared information with their supposed competitors, allowing them to execute their own trades before filling client orders and manipulating the benchmark FX rates. The allegations have already led to at least two class action lawsuits against Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan Chase, Royal Bank of Scotland and UBS.
Investment managers represented by the IMA stand to lose a lot if the FX markets are rigged, as they are among the biggest clients of banks’ foreign-exchange desks. Colin McLean, IMA member and CEO of SVM Asset Management Ltd., controlling about $970 million, told Bloomberg: “We deserve to know which mechanism is involved in any wrongdoing. Even very small errors or issues could involve large sums of money in absolute terms and that is why it’s a concern.”
The Investment Management Association (IMA), which represents the U.K. investment management industry, is applying pressure on the Financial Conduct Authority (FCA) to release more information about its investigation into the alleged manipulation of the FX market.
The IMA wrote to the FCA in recent weeks, asking how it should respond to clients’ inquiries about whether currency markets are being rigged, but the FCA replied that it could not comment on a current investigation, as was reported by Bloomberg yesterday.
The IMA is a trade group representing the British investment management industry, whose members manage over £4.5 trillion of assets on behalf of U.K. and overseas clients. Today, the IMA confirmed to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates that they wrote to the FCA on the issue of FX currency manipulation.
The FCA announced in October that it is investigating an alleged FX manipulation, writing to Forex Magnates: “We can confirm that we are conducting investigations alongside several other agencies into a number of firms relating to 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 (forex) market.”
The investigations focus on Bloomberg terminal chat groups with names such as ”The Cartel” and “The Bandits’ Club,” where major banks' traders allegedly shared information with their supposed competitors, allowing them to execute their own trades before filling client orders and manipulating the benchmark FX rates. The allegations have already led to at least two class action lawsuits against Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan Chase, Royal Bank of Scotland and UBS.
Investment managers represented by the IMA stand to lose a lot if the FX markets are rigged, as they are among the biggest clients of banks’ foreign-exchange desks. Colin McLean, IMA member and CEO of SVM Asset Management Ltd., controlling about $970 million, told Bloomberg: “We deserve to know which mechanism is involved in any wrongdoing. Even very small errors or issues could involve large sums of money in absolute terms and that is why it’s a concern.”