A PYMNTS Company

UK: Watchdogs obtain chat room evidence of forex manipulation

By  |  June 19, 2014

Sources say UK regulators have obtained troves of electronic messages between currency traders that include new evidence of foreign exchange market manipulation.

The Financial Conduct Authority is currently probing allegations that traders swapped confidential information to manipulate the forex market, and sources said the FCA has transcripts of electronic conversations that show evidence of the alleged collusion. According to reports, those transcripts are from 2011 and 2012 and involve traders at the world’s three largest forex banks, though reports did not name which banks.

Reports did say, however, that collectively the three lenders account for about 30 percent of the average daily forex turnover.

According to one source, the traders were inclined to collude in order to “protect themselves against the hedge funds’ aggressive trading strategy which abuse liquidity.”

The FCA declined to comment on the matter.

Full content: Yahoo Finance

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.