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U.K. authorities formally investigating exchange rate manipulation

The FCA probe follows an investigation from Swiss authorities in early October

Following a similar probe from Swiss authorities in early October, the U.K. Financial Conduct Authority (FCA) has opened a formal investigation to determine whether some of the country’s banks engaged in a scheme to manipulate foreign exchange rates.

Authorities believe banks from across the globe, including the U.S., pooled information to exchange large sums of money from one currency to another based on markets. According to regulators, one of the main violations is that these banks bought or sold currencies ahead of the 4 p.m. “fix,” which often sees exchange rates fluctuate wildly, without clients’ permission in order to turn a profit.

Assistant Editor

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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