Bank of England Employee Suspension Related to FX Probe

The continuing investigation into potential rigging of foreign exchange markets took an unexpected twist on Wednesday when the Bank of England suspended a member of staff in connection with its own review of the £3tn a day market and began a formal inquiry into whether its staff knew about potential market rigging.

The Bank also took the unusual step of releasing minutes of meetings held over six years until a year ago between Bank officials and of a group of foreign exchange traders who met three or four years a year which indicate that the possibility of fixing the market had been discussed as along ago as 2006.

A suggestion that a group of traders had told the central bank the were exchanging information about their client’s positions – one of the main themes of an investigation by regulators around the globe – in 2012 had sparked the initial internal review which in turn led the suspension of the official.

The Bank escalated this investigation into its own practices on Wednesday, appointing the oversight committee of the Bank’s court of directors – akin to the non-executive directors on a board – to look into whether officials condoned manipulation of foreign exchange prices.

via The Guardian

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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