Forex market is rigged

Get access to all our content — subscribe today 30 day free trial. The market tremors from the FX-fixing scandal and subsequent probe — triggering a flurry of fines, litigation cases and prosecutions — is set to reverberate for years to come.

Euromoney investigates the fallout for global banks and possible reforms. FX global code registers to be live within months May The newly formed global FX committee will issue guidelines and maintain an index of registers, but they will be run by the private sector. FX industry given 12 months to implement global code May New set of 55 principles replaces regional codes with a single blueprint for good conduct in global FX market.

The force will be with the rogue one December FX Working Group seeks to pre-empt blunt regulatory redress February The global FX code of conduct being developed by the FXWG under the auspices of the Bank for International Settlements has moved a step closer to becoming a reality, with a first draft being released to market participants for feedback. The death knell for last look? Travel companies take aim at banks June Lawyers and hedging consultants are reporting a rise in mis-selling accusations from companies in the travel and leisure sector, over complex currency derivatives sold to them by their banks and brokers.

These cases are in their infancy, but are predicted to rise as the mis-selling scandal broadens from interest-rate hedging products to forex products. BIS moves to end confusion over conflicting FX codes of conduct May The Bank for International Settlements BIS has formed a new FX working group to settle the problem of conflicting codes of conduct for FX market practitioners, promising to draw the best from all six existing codes to create a single document that will be universally applicable.

FX hedges in the spotlight April Mis-selling cases of foreign-exchange hedging products are on the rise with claimants inspired by the success of interest-rate swap mis-selling claims.

Moreover, sharp volatility in currency markets has hit some businesses' hedges hard, leading them to question the suitability of FX products sold to them by their banks. Fix fines fuel technology gold rush November Technology companies are gearing up for a potential gold rush around FX benchmark trading, amid expectations the multi-billion dollar fines imposed on banks last week will accelerate appetite for solutions to boost transparency, oversight and pricing, analysts say.

The debate around how to strengthen the regulation of FX markets continues to rage. Advocates highlight examples of regulations that have benefited the markets in the long run, while detractors warn of unintended consequences and cite their own examples of risk-mitigating measures evolving naturally within the industry. To receive more FX stories, please sign up to our alerts. The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only.

All material subject to strictly enforced copyright laws. All sections Search Search Search Euromoney Search.

If you're happy with cookies, continue browsing. Thursday, May 25, Special focus FX global code: The force will be with the rogue one December Amid all the calls for that get pumped out of research departments at this time of year, I have not seen any predictions for the return of the rogue traders. A rollercoaster year for foreign exchange December will be remembered as the year the people punished politicians at the polls, unleashing a torrent of volatility in financial markets, with currencies taking a huge hit.

Here are the biggest currency stories of Comms compliance race hots up October Communications compliance is moving up the agenda for financial services firms, as the City's watchdog cracks the supervisory whip and the implementation deadline for MiFID II fast approaches Restructuring a portfolio? How to avoid FX traps September Transition management firms play a vital role in helping asset managers restructure large portfolios of securities and remove or replace underperforming managers, but past controversies are a reminder to clients they should not assume they are always getting the best deal on FX.

Front-running and the death of fixed income August The case against two HSBC employees for front-running a foreign exchange order from a client could hasten the death of the principal model for FICC trading by banks. A shift to an advisory-based approach is possible, but banks will struggle to make up lost revenue.

If foreign exchange markets are rigged, the solution is simple

Restoring trust — the global code is here July The advent of a global code of conduct for the FX market should bring greater consistency, fairness and transparency to key industry practices. Market players defend voluntary BIS FX conduct code May Advocates claim the principles-based approach offers the best hope of restoring trust in the FX market once and for all.

Structural shifts upend troubled FX franchises May The foreign-exchange industry has been caught in a perfect storm of falling volatility, difficult trading conditions and regulatory challenges.

Many of the senior figures in FX have stepped aside, leaving a new generation to come to terms with a radically different market. FastMatch leading talks to create central tape for FX May A group of FX electronic communication networks ECNs and market makers are working together to create a central tape for FX, modelled on a similar project for US equities, which they hope will increase transparency and democratize the currencies market, Euromoney can reveal.

Hopes rise for whistleblowing cases March Revelations of benchmark fixing and manipulation appear to have created a more favourable environment for FX industry participants to highlight suspected wrongdoing but the data tell a different story in the UK. February A lack of clarity around the definitions of principal and agency trading, and the evolution of the grey area of the hybrid could give rise to further foreign-exchange scandals if the issue is unresolved.

Markets and regulators are pro-actively putting these FX trading practices under the microscope. BoE revamps FX Joint Standing Committee membership February The Bank of England BoE has recast the terms of reference and membership of a key foreign-exchange industry committee to take account of the growing diversity of the forex market in the UK and the central role that will be played by the new global code of conduct.

Peer-to-peer FX catches on August The foreign-exchange benchmark scandal looks set to be a boon for burgeoning peer-to-peer P2P currency-exchange platforms, as they capitalize on the demand for transparent and innovative solutions.

Global regulator the Financial Stability Board FSB has published its proposals on how to restore the integrity of foreign-exchange rate benchmarks in the wake of alleged market malpractice, but market participants argue these simply mask deeper structural problems in the industry.

FX players reveal favoured regulatory fix July As the FX regulatory landscape gets revamped, data from the Euromoney FX Survey shed light on what the market wants when it comes to benchmark reform, including its views on sticking with the current WM Company and Thomson Reuters fix. Reuters remains market choice for FX benchmark July As Thomson Reuters announces a revision to foreign-exchange trading rules, data from the Euromoney FX Survey reveal the majority of respondents want to see the joint WM Company and Thomson Reuters fix remain as the benchmark.

Forex scandal: How to rig the market - BBC News

Suggested reforms range from a transparent auction-based pricing system to banning the practice of last look. The reign of terror May Investigations into allegations of market fixing in foreign exchange are spreading into the very heart of the business. Do investigators and regulators risk bringing down the axe on a market that has always provided unrivalled liquidity and ultra-tight pricing for clients?

FX probe digs the dirt to clean up market structure May A high-profile investigation into market manipulation has heralded increased scrutiny of FX trading practices and could see major changes to the way the industry operates. But scratch below the surface and the tide may be turning towards a healthier market structure. FX probes spread to traders' personal accounts May Rumours have been circulating in the foreign exchange markets for some weeks that investigations — both internal by banks and external by regulators — will extend to bankers' use of personal accounts PA.

FX fixing controversy is so FX dealers discussed technical fix issues not market rigging, says BoE March Markets director Paul Fisher clarifies discussions that took place over trading around fixings at meetings of the Bank of England FX committee subgroup, but acknowledges severity of market-rigging allegations.

FX benchmark probe highlights flaws in voluntary best practices February As the Bank of England conducts a review into what its officials knew of FX benchmark manipulation, observers call for more robust adherence to trading best practices.

Banks make belated compliance push to combat market abuses February As more financial scandals continue to emerge, regulators and banks are hoping technology and new internal controls will allow them to get to grips with the rogues.

Trading floors might never be the same again. FX industry reels from regulatory earthquake January Foreign-exchange market tremors are likely to reverberate for years to come as the global probe deepens, triggering fears of regulatory overkill. Fix investigation switches focus to real-money clients November Asset managers are traditionally the biggest users of the foreign exchange daily fix.

forex market rigged

As Euromoney Market Data shows, the top banks in this area are not quite the same as the leading trading houses for overall market share. Fix scandal might herald the end of voice broking November Voice traders are already being sidelined by the big banks as the investigation into fixing the fix gathers steam. How far-reaching will the fallout from the fix scandal be? FX fixing is no Libor scandal — yet June News that UK regulators are investigating alleged manipulation in FX benchmarks has hit the headlines, but can it be compared to the Libor scandal?

MOST READ FOREX Bank of America Merrill Lynch delivers greater liquidity through MOEX connectivity.