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US: Motion to dismiss denied in FX rigging case

By  |  February 4, 2015

A federal judge in New York on Wednesday allowed a consolidated class action by U.S.-based investors concerning the rigging of the foreign exchange market to move forward.

In her decision, Judge Schofield described the allegations as involving “a long-running conspiracy among the world’s largest banks to manipulate the benchmark rates in one of the world’s largest markets.”

Plaintiffs believe certain FX traders shared inappropriate information about pricing, orders, and trading positions. The participants allegedly used this information to coordinate their actions and fix the prices of FX instruments.

Judge Schofield refused to dismiss antitrust claims against banks accused of conspiring to manipulate a different benchmark, the daily price average for trades in the foreign exchange market on Wednesday.

 

Full Content: Reuters

 

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