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

 

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news