Feb 17 In a crackdown on currencies traders,
financial institutions including Royal Bank of Scotland,
Deutsche Bank and UBS are reviewing the
rules governing how traders make bets with their own money, the
Financial Times reported on Monday.
People familiar the matter told the newspaper that these
lenders were looking at ways for a stringent policy regime on
"private account" trading to curb manipulation in global foreign
exchange markets. ()
"We do not want to prevent a sterling trader in London from
buying lunch," one senior banker told the FT.
Deutsche Bank declined to comment on the story. UBS and
Royal Bank of Scotland could not be reached outside of regular
Citing people familiar with the plans, FT said that Deutsche
Bank is mulling a threshold for how much personal money a trader
will be allowed to trade in each currency.
The FT had reported in November that the UK's Financial
Conduct Authority is probing the use of private accounts by
A person close to the situation told the newspaper that the
FCA probe was ongoing and comes amid allegations that some
traders might have used private accounts to place bets based on
information gleaned by exchanging details about client orders
Personal accounts trades are usually declared to the bank,
and are recorded via automatic emails. However, in the case of
personal accounts trading in forex, a trader converting euros
into dollars for use in the United States could theoretically
breach the rules.
London is the hub of the global forex market, accounting for
some 40 percent of the $5.3 trillion traded on an average day.
Foreign exchange benchmarks are scheduled to be reviewed by
the Financial Stability Board, which coordinates regulation for
the Group of 20 (G20) leading economies soon after the Britain's
market watchdog, the Financial Conduct Authority, opened probe
in October last year followed by the U.S. Department of Justice.
Last year, banks including Barclays and UBS were
fined $6 billion for rigging Libor benchmark interest rates.
Some of the same banks are cooperating with regulators in the