The foreign exchange market, with a daily average volume turnover of $ 5.3 trillion, is one of the most important and liquid financial markets in the world. In November 2014 and May 2015, several major banks were sentenced to pay record fines by US, UK and Swiss regulators for failing to take reasonable care to organise and control their affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading.
These shortcomings of the compliance and control systems of the concerned credit institutions made it possible for their traders to systemically manipulate exchange courses, especially of G10 currencies. In most cases traders of different banks shared confidential information of their clients’ orders through electronic message services.
The vast majority of the manipulations concerned – as above mentioned – G10 currencies (e.g. USD, EUR, GBP, JPY, CHF etc.) and the two major benchmark foreign exchange rates, the 4pm WM Reuters and 1:15 pm European Central Bank fixes. The damage caused is beyond billions.
If you require further information to the case at hand please contact Austrian counsel BREITENEDER Rechtsanwalt GmbH.