Switzerland's Regulator To Investigate Corrupt Foreign Exchange Deals At Its Own Banks And In London

on October 04 2013 8:18 AM

Swiss banking regulators are investigating the industry following reports that several of the country's banks may have manipulated foreign exchange rates.

FINMA, the Swiss Financial Market Supervisory Authority, has claimed that several banks from inside and outside the country could be implicated.

FINMA’s investigation follows reports that British regulator FCA (Financial Conduct Authority) was investigating whether foreign exchange rates were manipulated by traders to increase profits, as well as a June Bloomberg News report that found dealers had shared information and used client orders to move rates.

FINMA did not disclose details of the investigation, and Swiss Banking, the self-regulatory group that represents banking in the country, did not comment.

The investigations appear to point toward London, where 41 percent of foreign currency trading takes place, according to the Bank for International Settlements.

New York has the second-largest share at 19 percent, with Singapore, Hong Kong and Tokyo following. Switzerland has 3.2 percent of the market.

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