Bloomberg report that traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.
Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial.
Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years.
The UK markets watchdog has launched a preliminary investigation into foreign exchange rates trading after receiving complaints alleging that traders at leading banks were putting in trades ahead of customer orders and attempting to manipulate benchmarks.
