Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Commerce Commission investigates forex trading

Commerce Commission investigates currency trading amid global probe into manipulation

By Paul McBeth

March 31 (BusinessDesk) - The Commerce Commission has an investigation underway into the foreign exchange market, amid a global probe into alleged manipulation of currency rates.

The New Zealand regulator’s active investigation into the currency trading market comes as at least a dozen authorities in North America, Asia and Europe conduct inquiries into claims traders colluded with their counterparts at rival banks to set foreign exchange rates by sharing client information.

The Commerce Commission has an “investigation in that space,” a spokeswoman told BusinessDesk. She declined to comment on the scope of the probe or any of the parties involved.

The New Zealand dollar was the world’s 10th most traded currency with US$105 billion in average daily turnover in April 2013 and accounting for about 2 percent of the global US$5 trillion traded daily, according to the Bank for International Settlement. The bulk of trading in the kiwi occurs outside New Zealand.

The Australian Securities and Investment Commission joined the worldwide probe earlier this month, telling the Financial Times it would likely take a year to complete the investigation.

The Financial Markets Authority is aware of the international inquiries, and will “continue to monitor developments here and abroad, and to liaise with agencies in New Zealand, Australia and further afield,” a spokesman said in an emailed statement.

Since the allegations of global market manipulation emerged in a Bloomberg report last year, about 30 foreign exchange traders have been suspended, put on leave, or fired, of which seven have come from Swiss bank UBS, the world’s fourth-biggest currency trader, according to a Reuters report. Other firms reported to have suspended, put on leave, or fired staff include Citigroup, Royal Bank of Scotland Group, and Barclays.

Earlier this month the Bank of England, the UK central bank, suspended a staff member pending an internal review into allegations its employees were aware of the market manipulation.

The probe into foreign exchange trading comes after a similar investigation into fixing the London Interbank Offered Rate, the borrowing rate between lenders known as the Libor. That probe resulted in financial institutions paying some US$6 billion to settle civil and criminal claims.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news