German watchdog says no need yet for special forex probe

FRANKFURT Tue Oct 8, 2013 11:05am EDT

FRANKFURT Oct 8 (Reuters) - German financial markets watchdog Bafin said on Tuesday it was in contact with foreign regulators looking into allegations of possible manipulation of the $5 trillion-a-day foreign exchange market but has not yet seen any need for a special investigation.

"We've been looking at the situation since the summer," a Bafin spokesman said, adding that German regulators have been in contact with their foreign counterparts.

"We have seen no reason to start a special investigation so far," the spokesman added.

On Monday EU Competition Commissioner Joaquin Almunia said EU regulators were looking at the allegations, days after the Swiss authorities announced their own investigation into the issue.

Switzerland's financial markets regulator said on Friday that it was working with the authorities in other countries on the issue. It did not name the banks under investigation.

The currency market, the biggest market in the financial system, is one of the least regulated with most trading taking place away from exchanges.

Almunia, with the power to fine companies up to 10 percent of their global revenue for breaching EU competition rules, is already investigating alleged wrongdoing in the setting of various financial market benchmarks.