View more on these topics

Bank of England hits back over forex allegations

Mark Carney says regulation could be needed for the foreign exchange markets in the wake of rate-rigging allegations.

Speaking to the Treasury select committee this week, the Bank of England governor said he acted swiftly when he heard allegations that the Bank had condoned trader manipulation.

Last week, the Bank of England suspended a member of staff over allegations that the individual had allowed traders to manipulate the market.

TSC chair Andrew Tyrie says the Bank’s “Byzantine” structure makes it difficult to hold staff to account.

Carney first knew about the allegations last October but defended the subsequent secret investigation and redacted minutes of board meetings.

The FCA is conducting a them-atic review of firms’ execution practices, including the way services are described to clients and arrangements for order execution and review. It expects to publish the results by the end of June.

Bank of England executive director of markets Paul Fisher, who was head of foreign exchange at the Bank until 2009, told MPs: “I have never come across specific allegations of people rigging the market until this news last year. The allegations are about the traders themselves. 

“It would have been very odd [for traders] to come to meetings with us and say ‘We are rigging the markets. What do you think?’ That is not going to happen.”

Banking consultant Mehrdad Yousefi says: “Everyone is looking at markets in more detail after the crisis so some areas will need to be regulated to end ambiguity. While not as big as Libor rigging, this scandal is still an international issue.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm