Posted by: youngragingbull | June 11, 2013

Global banks rigged forex benchmarks: Bloomberg

Traders at a number of major global banks have been manipulating spot foreign-exchange rates for at least a decade, altering the values of trillions of dollars worth of investments, Bloomberg News reported Tuesday, citing five unnamed dealers.

The scheme involves the WM/Reuters Closing Spot Rates, which are used to provide daily benchmarks to value portfolios.

However, market participants have been front-running client orders to rig the rates by pushing through trades before and during a 60-second window when the rates are set.

British regulators are considering a probe into allegations of this practice, the report said.

Sources: Bloomberg, MW

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Responses

  1. And water’s wet, no big surprise banks have been rigging the financial system since the first securities were bought and sold.

  2. Unfortunately, you’re right!


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