March 10 The U.S. Securities and Exchange
Commission (SEC) is investigating whether currency traders
distorted prices for options and exchange-traded funds by
manipulating benchmark foreign exchange rates, Bloomberg News
reported on Monday.
The SEC's probe is at an early stage, Bloomberg reported,
citing two people with knowledge of the matter.
The Commodity Futures Trading Commission (CFTC), which
regulates foreign exchange derivatives, is also investigating
possible manipulation, Bloomberg reported, citing a person with
knowledge of the matter.
People familiar with the probes had told Reuters that
regulators were examining the effects of currency manipulation
on related options contracts, but did not identify whether the
SEC was involved.
An SEC spokeswoman declined comment. The CFTC did not
respond to a request for comment.
Britain's Financial Conduct Authority was unavailable for
Regulators across Europe, Asia and the United States are
investigating allegations that senior traders exchanged
market-sensitive information via electronic communications to
manipulate key currency rates, known as "fixings."
Bank of England Governor Mark Carney is to face questioning
from UK lawmakers on Tuesday into what Bank officials knew about
the allegations, after the central bank suspended an employee
last week in connection with the investigation.
Some of the world's biggest banks have already placed on
leave, suspended or fired more than 20 traders.