Currency Market Probe Widens

According to reporters, a global investigation into alleged currency-market manipulation has been expanded to 15 of the world’s biggest banks.

The probe also includes euro-dollar trading, which is the biggest part of the market.

Last month Britain’s Financial Conduct Authority (FCA) said it was examining whether traders had colluded. Regulators in Switzerland, Hong Kong and the US are now also involved.

It has been said that the global foreign exchange market is worth over $5tn a day, of which London is the most important hub, accounting for an estimated 40% of all foreign exchange trading.

A number of banks have confirmed their co-operation with the investigation, including JP Morgan Chase, Royal Bank of Scotland, Citigroup and Barclays.

It was reported earlier in the month that Barclays suspended six traders as part of a probe into suggestions that currency markets could have been rigged. Royal Bank of Scotland also suspended two traders in connection with the investigation into the currency markets.

Suspicions of exchange rate manipulation centre on a one-minute window of trading every day that is used to set exchange rates. It is being suggested that traders colluded to push through high volumes of trades in the run-up to and during this window to influence rates.