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

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news