Barclays and RBS Suspend Currency Traders As Part of Manipulation Probe

UK bank Barclays has suspended several traders as part of a probe into suggestions that currency markets could have been rigged, the BBC has learnt.

The BBC’s chief economics correspondent, Hugh Pym, said there was no suggestion of wrongdoing and that Barclays had declined to comment.

On Thursday, Royal Bank of Scotland suspended two traders in connection with the investigation.

The Financial Conduct Authority (FCA) probe is said to be at an early stage.

Regulators around the world, including the UK’s FCA, are investigating the currencies market and Barclays, RBS, Citigroup, Deutsche Bank and UBS have all confirmed that regulators have been in contact with them over the currency probe. On Friday, JP Morgan Chase added that it was also being questioned.

The global foreign exchange market is worth more than $3 trillion a day, and London is the most important hub, accounting for about 40% of all foreign-exchange trading.

via BBC

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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