Transcript from chatroom could implicate Bank of England in FX rate rigging saga

A written conversation by a senior dealer has been provided to the FCA, indicating that BofE officials agreed sharing information has advantages

Following Bank of England Governor Mark Carney’s assertion last week that the institution over which he presides could not have possibly been party to any information which suggests that officials at the Bank of England may have known about situations in which FX rates had been manipulated, a report by Reuters today states that the Financial Conduct Authority (FCA) is examining evidence that may prove the contrary.

According to Reuters, this particular evidence pertains to a meeting which took place in 2012 among currency dealers and Bank of England officials. Transcripts of an FX chatroom which have been handed to the FCA reveal that a senior dealer who attended said meeting had told fellow traders the next day that the Bank of England officials had agreed that there were advantages to sharing client order information to minimize market volatility around daily reference rates.

The two anonymous sources which provided this information to Reuters asserts that information relating to these reference rates, known as fixings, can be shared in order that traders are able to match trades and minimize price swings, thereby reducing the risk they take on big transactions.

This particular transcript, dated April 24, 2012 is now being held as a central piece of evidence as well as being one of the very few pieces of written evidence in what has become a global, and extremely high profile investigation.

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