World’s top financial regulator joins global FX probe

From: Reuters

Foreign exchange benchmarks will be reviewed by the world’s top financial regulator, the latest front to be opened in a global probe into allegations of price manipulation in the world’s largest financial market.

The Financial Stability Board (FSB), which coordinates regulation for the Group of 20 (G20) leading economies and is chaired by Bank of England governor Mark Carney, said on Friday it would open its own investigation.

It is the latest step in an investigation into allegations that a handful of senior traders exchanged market-sensitive information and colluded to manipulate benchmark currency rates.

The U.S. Department of Justice and Britain’s Financial Conduct Authority (FCA) are among those leading the investigations into potential wrongdoing in the $5.3 trillion (3.16 trillion pounds)-a-day market.

The U.S. Federal Reserve is also involved in the probe, several sources with knowledge of the investigation have told Reuters, although the extent of that involvement is unclear.

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