(Corrects date and time of first extract to July 4, 2006 at
Smiths, EC1M instead of April 10, 2006 at Gaucho Grill, EC2.)
LONDON, March 5 Following are key extracts from
minutes of meetings between Bank of England officials and senior
foreign exchange dealers in London between 2005 and 2013 showing
a record of discussions going back to 2006 about possible
manipulation of world currency rates around benchmark fixings.
The release of the documents comes four months after
Britain's Financial Conduct Authority and the U.S. Department of
Justice opened investigations into the alleged manipulation and
collusion in global currency markets as part of an international
probe that has already led to several senior dealers being fired
The minutes were released on Wednesday following a Freedom
of Information request from Reuters last month. They were
published alongside a statement from the BoE which said it had
suspended an unnamed official as part of an internal
investigation into what the bank knew about the allegations
before regulators stepped in last year.
FOREIGN EXCHANGE JOINT STANDING COMMITTEE - CHIEF DEALERS SUB
- "MINUTES OF THE 4 JULY 2006 MEETING AT SMITHS, ECIM"
"It was noted that there was evidence of attempts to move
the market around popular fixing times by players that had no
particular interest in that fix. This was not in the interest of
customers if the market was forced away from where it should be
when the fixing snapshot was taken. It was noted that 'fixing
business' generally was becoming increasingly fraught due to
- "MINUTES OF THE 12TH MEETING - 16 MAY 2008; CITI, FURNITURE
MAKERS HALL, LONDON EC2N"
"There was considerable discussion on this topic with the
large majority of members expressing concern about the lack of
transparency among some methodologies and the impacts in
managing order flow and pricing liquidity at times of
concentrated benchmarked interest such as the 4pm London fix.
The chair proposed inviting a representative from a major
fixing company to present to the group and hear member's views
at the July meeting."
- "DRAFT MINUTES OF THE 13th MEETING - 4 JULY 2008; HSBC, 8
CANADA SQUARE, LONDON E14"
"Mr (Brian) Dawson (of WM Company) gave a brief overview of
the WM/Reuters venture which produces exchange rate fixings.
WM/Reuters currently produce intraday (every hour) and closing
spot and forward rates and are working towards providing 24h
spot and forward rates as well as NDF rates.
The minutes then detail the presentation into the mechanics
of the fix for spot and forward currency rates.
"It was noted that WM/Reuters do not use traded volumes data
in the calculation of the spot rates. While they have access to
Reuters volume data, the same is not the case for EBS data. The
Chief Dealer group agreed that actual traded volumes is a key
consideration in the calculation of accurate fixings and
suggested that this would be a useful next step in the
development of WM/Reuters' model. Furthermore it was suggested
that using a snapshot of the market may be problematic, as it
could be subject to manipulation. Perhaps WM could use a window
of observations, and determine at what point to fix using volume
"The Chair thanked Mr Dawson for his insightful presentation
on WM/Reuters' fixing model and noted that the Chief Dealers
group would be happy to communicate further with WM Company and
provide suggestions on how to further enhance their model. He
invited WM Company to attend a future Chief Dealers meeting for
a follow-up session."
- MINUTES OF THE MEETING ON APRIL 23 2012
"There was a brief discussion on extra levels of compliance
that many bank trading desks were subject to when managing
client risks around the main set piece benchmark fixings".
(Reporting by Mike Dolan; Editing by Catherine Evans)