UK Financial Watchdog FCA Confirms FX Market Manipulation Investigation
- The alleged market manipulation carried out by participants in the FX markets has seen regulators take the case on-bard. The UK’s regulatory authority, the FCA, has officially confirmed it is investigating the matter in a statement today.
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.
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 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 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) 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.”
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.
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 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 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) 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.”