‘Currency probe finds evidence of collusion’

Comment on this story

IOL world currency1

Graphic: Renjith Krishnan.

London - The global probe into alleged manipulation of currency rates has uncovered evidence of collusion between traders to try to maximise profits and minimise losses, the Wall Street Journal reported on Friday.

It cited people familiar with the investigations.

Electronic chatroom messages appear to show that traders from different banks shared information about client orders and agreed to sequence their own trades to take advantage, the paper reported.

This would appear to be the first evidence of collusion between traders.

The Financial Conduct Authority, Britain's financial watchdog, declined to comment on the report.

Chatrooms have been a focus for regulators investigating manipulation of benchmark interest rates and possible rigging in the $5.3 trillion-a-day foreign exchange (FX) market.

Regulators are scrutinising online messages between currency traders to see whether there is any evidence that they worked together improperly to influence foreign exchange “fixes” - the daily snapshots of currency rates used by firms and portfolio mangers for valuing assets.

Traders at banks and other financial institutions often communicate with each other via third-party services including those offered by Bloomberg LP and Thomson Reuters Corp TRI.TO (parent of Reuters News). - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.


Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks

Business Directory