Nov 18 The UK's Financial Conduct Authority
(FCA) is probing the use of personal accounts by foreign
exchange traders amid allegations that traders used these
accounts to trade their own money ahead of clients' orders, the
Financial Times reported on Monday, citing two sources close to
The FT said the FCA had asked several banks to investigate
whether traders used undeclared personal accounts. ()
A spokesman for the FCA declined to comment.
The FT also reported, citing sources, that the compliance
departments at top banks were now looking at tightening rules on
personal accounts for foreign exchange traders because of the
Over the past two years, regulators and prosecutors have
extracted billions in fines from global banks after finding that
they rigged Libor, the average rate at which a panel of banks
expects to borrow money.
The Libor investigations have forced authorities to
scrutinize other benchmarks, including those that undergird the
$5.3 trillion-a-day currency market, to investigate whether they
are open to similar kinds of skewing.
Regulators in Switzerland, the UK and Hong Kong said in
October they were investigating the conduct in currency markets.