Sources: FCA in discussions with banks on FX manipulation settlement

While the FCA and the banks involved were unavailable for comment today, it is being reported by Mark Klienman of Sky News that the UK’s financial regulator has this week held secret talks with some of the world’s biggest banks about a settlement for the manipulation of global Forex markets that could cost the lenders a total of around £2bn in fines.

According to senior banking sources, the settlements, which would be confirmed simultaneously, could cost in the region of £2bn in total – which would be the FCA’s largest series of fines for the same offense and could spell the beginning of the end of the FX probes we have been reporting on throughout the year. Besides punishment for offenses, what will remain is implementing much needed reforms, such as extending the 4pm FX fix window by five minutes which is among other suggestions also being discussed.

Also of note being reported is that the FX fines would  easily surpass the biggest of the fines the FCA has handed out for manipulation of the Libor interbank borrowing rate. The banks involved, which include Citi, JP Morgan and UBS, would pay different sums, depending on the gravity of their traders’ alleged efforts to artificially move FX rates.

Sources close to the matter confirmed the FCA had agreed with the lenders an eight-week consultation period to try to reach a deal by the end of November.

To view the entire article from Sky, click here.

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Sources: FCA in discussions with banks on FX manipulation settlement


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