According to a Bloomberg report published late this afternoon, the New York attorney general is the latest government body to take action relating to the foreign exchange markets. The difference this time around is that the targets of the investigation are not major banks but inter-dealer brokers.

In contrast to the manipulation charges which major banks have been facing, the targets of this investigation will most likely be brokers who are engaging in spoofing. The practice has become known as traders have been using entry orders to simulate excessive demand or supply in certain futures, options and shares.

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The report by Bloomberg cites sources familiar with the matter that allege that the targets of the investigation are fake bids and offers that have been placed in option contracts on emerging marker currency pairs.

While no official comments have been received from the parties involved, the article claims that the office of Eric Schneiderman sent subpoenas for records to a number of inter-dealer brokers, amongst which are ICAP, Tullett Prebon Plc, BGC Partners Inc. and GFI Group Inc, which is owned by BGC Partners.

Roughly two years after the explosion of the foreign exchange manipulation scandal, another scandal involving spoofing could further dent the reputation of the transparency of the foreign exchange market.