RBS Joins FX Manipulation Internal Review

Fallout from global investigations into possible manipulation of the $5.3 trillion-a-day forex market spread on Wednesday, as Royal Bank of Scotland (RBS) (RBS.L) said it had sought to reassure clients about rates they were offered while Barclays (BARC.L) said it was cooperating with regulators.

Benchmark foreign exchange rates, often referred to as fixes, are a cornerstone of global financial markets, used to price trillions of dollars worth of investments and deals and relied upon by companies, investors and central banks.

Regulators in the United States, Asia and Europe are investigating possible manipulation of these benchmarks and RBS confirmed on Wednesday it had emailed clients last week to tell them it was reviewing how it trades foreign exchange in the minutes before rates are set.

“We are currently considering processes around the benchmark service. The email does not reflect final policy and we are clarifying this with our clients,” RBS said.

Barclays, meanwhile, said it was reviewing records from its FX trading business going back several years as part of the international probe.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza