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Tag Archive: Financial Conduct Authority


RBS suspends FX trader, bringing total to three

LONDON Wed Feb 19, 2014 12:51pm GMT

A sign is seen outside a Royal Bank of Scotland building in central London January 28, 2014. REUTERS/Paul Hackett

A sign is seen outside a Royal Bank of Scotland building in central London January 28, 2014.

Credit: Reuters/Paul Hackett

(Reuters) – Royal Bank of Scotland (RBS.L) has suspended a senior currency trader in London, bringing to three the number of traders suspended by the bank since a global investigation into allegations of rigging reference exchange rates was launched last year.

Ian Drysdale was put on leave earlier this week and has now been suspended, a source familiar with the matter said.

This follows the suspension of Julian Munson and Paul Nash in October last year.

RBS declined to comment, and Drysdale could not be reached for comment.

On Tuesday RBS said it was reviewing rules on currency dealers trading with their own money.

The global probe into online communications between traders and allegations of manipulating benchmark currency rates known as “fixings” has seen more than 20 traders at many of the world’s biggest banks put on leave, suspended or fired.

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Another RBS trader suspended over foreign exchange rigging probe

As many as 20 foreign exchange traders at a handful of banks are thought to have been suspended as regulators investigate
Royal Bank of Scotland

Royal Bank of Scotland has paid $275m to settle a class action suit relating to the way it sold mortgage-based securities in 2008. Photograph Facundo Arrizabalaga/EPA

Another currency trader at Royal Bank of Scotland has been suspended as regulators around the world continue their investigation into potential rigging of the £3tn a day foreign exchange market.

The bank would not comment on reports that Ian Drysdale had been placed on leave earlier in the week and was now suspended, becoming the third RBS forex trader to be suspended.

RBS is just one of a handful of banks suspending or firing traders amid allegations that Martin Wheatley, the chief executive of the Financial Conduct Authority, has said are every bit as bad as those about Libor, the benchmark interest rate.

As many as 20 foreign exchange traders are thought to have been asked to stay away from their roles in banks around the world as a result of the investigations which are thought to be at the early stages.

The 81% taxpayer-owned bank is also continuing to take hits to clean up past issues, with a $275m (£165m) payout on Wednesday to settle a class action suit relating to the way it sold mortgage-based securities during the 2008 banking crisis.

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By | February 7, 2014 13:22 PM GMT

RBC Capital Market’s Co-Head of Currency Trading Graeme King Exits Amid FX Fixing Scandal

REUTERS

RBC Capital Markets’ co-head of foreign exchange spot trading, Graeme King, has left the bank while a raft of global investigations into the suspected manipulation of currency markets goes on.

According to a Reuters report, King has already left the bank but there was no confirmed reason for his departure.

RBC’s representatives were not available at the time of publication.

The daily $5tn (£3.1tn, €3.7tn) currency market is the largest in the financial system and is pegged to the value of funds, derivatives and financial products.

Morningstar estimates that $3.6tn in funds, including pension and savings accounts, track global indexes.

FX rates are calculated are compiled by using data from a variety of submitted provisions on a number of platforms, such as Thomson Reuters.

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Ten Banks in FX Trading Probe Have Handed Evidence to FCA

By Ben Moshinsky Feb 4, 2014 9:55 AM CT
Photographer: Simon Dawson/Bloomberg

The allegations are “as bad as Libor,” Wheatley told lawmakers in London today,… Read More

Ten banks turned over evidence to the U.K. Financial Conduct Authority as part of an investigation into the manipulation of foreign-exchange benchmarks, its chief executive officer told lawmakers.

The allegations are “as bad as Libor,” FCA CEO Martin Wheatley said in London today, referring to the global probe into rigging of the London interbank offered rate. Those investigations have resulted in global fines of about $6 billion and led to reviews of other benchmarks, including currency rates.

The regulator is investigating “a number of benchmarks that operate in London,” Wheatley said. The foreign-exchange probe is unlikely to be concluded this year, he said, without identifying any banks under investigation.

The regulator said in October it was opening a formal probe into currency-rate trading, joining regulators in the U.S. and Switzerland in reviewing the $5.3 trillion-a-day market. The world’s seven biggest foreign-exchange dealers have now all taken action against their employees, with at least 17 traders suspended, put on leave or fired.

Royal Bank of Scotland Group Plc has handed over records of instant messages to the FCA after concluding a former currency trader’s communications with counterparts at other firms may have been inappropriate, according to two people with knowledge of the matter.

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WRAPUP 2-Forex probe widens as New York banking regulator steps in

Emily Flitter and Jamie McGeever

 

Feb 5 (Reuters) – New York banking regulator Benjamin Lawsky is seeking documents from some of the biggest banks in foreign exchange trading, including Deutsche Bank, Goldman Sachs and Barclays, a source familiar with the matter said Wednesday, as a global probe into possible market manipulation widens.

At least seven other law enforcement offices and regulators internationally are investigating whether banks rigged the $5.3 trillion-a-day currency markets. Martin Wheatley, chief executive officer of Britain’s Financial Conduct Authority, said on Tuesday that his watchdog group’s probe could extend into 2015, and that the allegations it is looking into are “every bit as bad” as the Libor manipulation scandal.

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UPDATE 1 -Citi’s global head of foreign exchange to leave bank -memo

LONDON Wed Feb 5, 2014 2:59pm GMT

Feb 5 (Reuters) – The global head of foreign exchange at Citigroup, the world’s second largest currency trader, is leaving the bank, according to an internal bank memo seen by Reuters on Wednesday.

 

London-based Anil Prasad’s departure, however, is not related to the global investigation into allegations of currency market manipulation, a source familiar with the matter said.

“Anil’s decision is his own and entirely unrelated to the on-going FX investigations,” the source said.

 

Citi sees 14.9 percent of the average $5.3 trillion that flows through the world currency markets every day, according to the last annual poll by Euromoney, just behind market leader Deutsche Bank AG which sees 15.2 percent.

 

Prasad joined Citi in India in 1986 and relocated to New York two years later. In 1996, he moved to London but left the bank the following year to join Natwest Capital Markets.

 

He returned to Citi in 2000, and was appointed Global Head of Foreign Exchange & Local Markets in February 2007. His successor will be announced in the coming weeks.

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