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Global: Banks turn to innovative tech in wake of massive market rigging scandals

 |  May 29, 2014

As regulators around the globe continue to pursue widespread allegations of foreign exchange benchmark rigging, LIBOR and Euribor manipulation and commodities price-fixing, reports say banks are turning to high-tech innovations to help curb the market abuse.

A major trend emerging within the world’s largest banks in the wake of the scandals is the adoption of voice forensic technology, according to reports. The tactic can aid regulatory probes as watchdogs are depending more on electronic information to gather evidence of market abuse, including emails, instant messages and phone calls.

According to Fonetic USA CEO Simon Richards, the company has seen a spike in demand for voice analysis software and services by banks and other members of the financial services sector. According to the executive, the software flags certain phrases that could be considered triggers for evidence of market manipulation.

Authorities around the globe have issued billions of dollars in fines to several of the world’s largest banks for market-rigging behavior. Investigations are ongoing regarding foreign exchange market manipulation, and the fixing of aluminum and other metals prices.

Full content: International Business Times

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