The U.K. markets regulator opened a formal investigation of currency-rate trading amid allegations of manipulation in the $5.3 trillion-a-day market that have triggered similar probes in the U.S. and Switzerland.
“We are gathering information from a wide range of sources including market participants,” the Financial Conduct Authority said in an e-mailed statement today. “Our investigations are at an early stage and it will be some time before we conclude whether there has been any misconduct which will lead to enforcement action.”
Traders at some banks may have pooled information about their positions through instant messages and used client orders to move benchmark currency rates, Bloomberg News reported in June. The FCA said at the time it was reviewing the allegations.
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