Fix Probe Takes a Personal Turn

As the investigation by authorities of allegations that the benchmark WMR fix was nopen to collusion takes it course a new deeper twist has emerged as the FCA reveals that  it has asked banks to declare if any of their traders used undeclared personal trading accounts for their own benefit.These inquiries now add another dimension to the already deepening probe into the FX market , one that has seen several global banks send senior staff on leave whilst compliance and other investigating authorities delve through their internal and external communications.The market has been abuzz for years that traders have been speculating for years with private accounts held at spread betting firms for their personal gain using their inside knowledge.Banks have varying policies when it comes to these accounts.UBS banned them altogether a few years ago however a number of banks still allow them provided they are declared to senior officials and every trade is reconciled by compliance via an email.High quality global journalism requires investment.
Banks often try various other methods to prevent buying and selling of currencies too quickly.One of these is asking the trader to hold onto the position for a number of days however this would be easily circumvented if the individual had a willing accomplice who had the reciprocal position for the same number of days …This raises the dreaded C word again…Collusion. The regulatory investigation into the Forex market has opened up a veritable Pandoras box and it still remains to be seen where this will take us.

About Hetal Patel - Chief Editor, Europe

Hetal Patel has written 58 post in this blog.