BNP Paribas Fined $246 Million by Fed over Rigging of Forex Markets
- Other banks have also faced huge fines for allowing their traders to club together to rig FX market prices.
BNP Paribas has been slapped with a $246 million fine by the US Federal Reserve board, which found a long pattern of "unsafe and unsound practices in 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 (FX) markets."
The London Summit 2017 is coming, get involved!
The Fed also ordered France’s biggest bank on Monday to put in place a program to ensure that the alleged violation doesn’t happen again.
The board said: “The bank had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors, using electronic chatrooms.”
Earlier in May, the New York regulator accused more than a dozen traders and salespeople working for the Paris-based bank of manipulating the $5.3 trillion a day 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 and other illegal activity over the course of six years. BNP Paribas has since agreed to pay $350 million to make up for the misconduct.
The US central bank found that the bank’s traders, using different names to disguise client requests for quotes and trading activity, shared information and conspired to move currency benchmarks, including the so-called 4 p.m. fix in London.
Other banks have also faced huge fines for allowing their traders to club together to rig prices in FX markets. Last year, four banks – Barclays, Royal Bank of Scotland, Citigroup and JP Morgan Chase – pleaded guilty to conspiracy to rig the foreign exchange market and fines totalling $5.6 billion were handed down by the US Department of Justice.
BNP Paribas has been slapped with a $246 million fine by the US Federal Reserve board, which found a long pattern of "unsafe and unsound practices in 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 (FX) markets."
The London Summit 2017 is coming, get involved!
The Fed also ordered France’s biggest bank on Monday to put in place a program to ensure that the alleged violation doesn’t happen again.
The board said: “The bank had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors, using electronic chatrooms.”
Earlier in May, the New York regulator accused more than a dozen traders and salespeople working for the Paris-based bank of manipulating the $5.3 trillion a day 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 and other illegal activity over the course of six years. BNP Paribas has since agreed to pay $350 million to make up for the misconduct.
The US central bank found that the bank’s traders, using different names to disguise client requests for quotes and trading activity, shared information and conspired to move currency benchmarks, including the so-called 4 p.m. fix in London.
Other banks have also faced huge fines for allowing their traders to club together to rig prices in FX markets. Last year, four banks – Barclays, Royal Bank of Scotland, Citigroup and JP Morgan Chase – pleaded guilty to conspiracy to rig the foreign exchange market and fines totalling $5.6 billion were handed down by the US Department of Justice.