On 19 December the first and only known arrest was made in relation to the scandal. Close Financial Times International Edition. Retrieved 28 July Keep abreast of significant corporate, financial and political developments around the world. From Wikipedia, the free encyclopedia.
The UK’s Serious Fraud Office has launched a criminal probe into the alleged manipulation of forex and has begun its interviews under caution — where suspects are read their rights — according to people familiar with the investigation.
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Learn more and compare subscriptions. Close Financial Times International Edition. Search the FT Search. World Show more World links. This behavior was facilitated by traders at different institutions communicating through messaging services and online chat rooms. They used this information to determine their trading strategies and to attempt to trigger stop loss orders and manipulate the fix in the desired direction for example, to ensure that the rate at which the bank had agreed to sell a particular currency to its clients was higher than the average rate it had bought that currency in the market.
Further, a trader within one group complained in a chat room about another trader in the group not disclosing a large net order to him in advance of a fix: The test here is whether a jury is more likely than not to convict the defendant of the charge alleged - a lower standard to that which a jury in a criminal case must be satisfied of prior to any conviction.
The CPS Code stipulates that the SFO must consider what the defense case may be, and how it is likely to affect the prospects of conviction . What stands out from a reading of the FCA Final Notices are the lack of policies and guidance regarding both the use of chat rooms by traders, and what were acceptable communications.
For example, in its findings against one bank, the FCA noted that what limited guidance there was regarding the general use of chat rooms was not specific to the FX trading business and did not explain in sufficient detail the types of chat room communications that were considered to be unacceptable.
Meanwhile at one bank, where the front office had primary responsibility for identifying, assessing and managing the risks associated with its spot FX trading business, some individuals responsible for managing front office matters were not only aware of but also at times involved themselves in the alleged FX market manipulation.
Given this prevalent culture and the lack of guidance, some FX traders may have sought to argue that their conduct was simply not dishonest. However, in the recent failed Libor trial noted below these arguments did not seem to dissuade the SFO from continuing its investigations and bringing prosecutions. What may have ultimately discouraged, or given the SFO some reservation in continuing its investigation, is the recent acquittal of the six brokers in the second Libor trial at Southwark Crown Court in January
We can confirm that we are conducting investigations alongside several other agencies into a number of firms relating to trading on the foreign exchange (forex) market. As part of this we are gathering information from a wide range of sources including market participants. At the time it launched the forex investigation in , more than 20 individuals had either been suspended or fired from financial institutions during the global investigation into currency rigging. The Serious Fraud Office (SFO) recently announced that it had closed its criminal investigation into allegations of fraudulent conduct in the foreign exchange (FX) market. The SFO began its investigation in July following the referral of material by the Financial Conduct Authority (FCA).