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UK: Authorities target JPMorgan exec in forex probe

 |  October 15, 2013

Sources told reporters that ex-Royal Bank of Scotland trader and chief JPMorgan Chase & Co dealer Richard Usher sent instant messages while at RBS currently being called into question by UK regulators as part of an investigation into allegations of manipulation of the foreign exchange market.

The messages, say sources, were sent to traders at other companies and included sensitive information regarding Usher’s trading positions. According to The Wall Street Journal, the conversations were titled “The Cartel” and “The Bandits’ Club.”

The UK’s Financial Conduct Authority is reportedly collecting information on electronic messages used by currency traders as part of its investigation, currently focused on benchmark rates used to value trillions of dollars worth of investments.

Reports emerged last June that traders may have swapped information about trading positions to manipulate that benchmark.

RBS has handed over instant message records to authorities and opened its own internal investigation into the matter.

Regulators within Switzerland and the US are also reportedly probing the foreign exchange market, though investigations are at various stages.

Full Content: Bloomberg

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