By Sam Obenhaus
The fix was in and now the Financial Stability Board (FSB),
an international financial regulator created by the G20, is investigating.
At issue is alleged collusion among traders to set benchmark
foreign-exchange rates. According to
initial investigations carried out by dozens of financial regulators across the
globe, traders used chat rooms to share market-moving information about their
impending foreign-exchange trades. They then allegedly used this information to
organize their trades during “the fix,” which is a one minute span starting at
3:59:30 London time each afternoon. The
trades executed during “the fix” are used to set the foreign exchange benchmark
rates.
After independent investigations by regulators including the
U.S. Federal Reserve, the Bank of England and the Reserve Bank of Australia,
the FSB is launching its own probe.
The FSB was created to “to develop and promote the
implementation of effective regulatory, supervisory and other financial sector
policies” across the G20. Its membership
is made up of financial regulators from G20 states. The United States’ Treasury Department, Federal
Reserve Board, and Securities and Exchange Commission are all members.
Bloomberg
has more on this story.
0 comments:
Post a Comment