Hong Kong and New Zealand launch forex probes (based on ft.com article)
Hong Kong and New Zealand have joined other leading regulators by launching full investigations into local banks’ possible manipulation of the foreign exchange markets, adding to the escalation of global probes.
In both countries regulators said on Tuesday they were investigating banks in their markets, a day after Switzerland’s competition watchdog became the first regulator to confirm publicly it had uncovered signs of illegal activity as it announced an investigation into possible forex manipulation by eight banks. Also on Monday, the UK’s financial regulator said it was examining the controls investment banks have in place to prevent traders from rigging benchmarks.
The Hong Kong Monetary Authority has previously only confirmed that it was liaising with overseas regulators, collecting information and making inquiries with banks in the city.
However, on Tuesday it confirmed that it had asked a number of banks in Hong Kong to hire independent lawyers or consultants to review their businesses.
“The HKMA is investigating a number of banks in Hong Kong by requiring them to conduct independent reviews of their FX operations and submit the results to the HKMA,” it said. “The reviews are in progress. The HKMA is also liaising with relevant overseas bank supervisors on the matter.”
Hong Kong and New Zealand have joined other leading regulators by launching full investigations into local banks’ possible manipulation of the foreign exchange markets, adding to the escalation of global probes.
In both countries regulators said on Tuesday they were investigating banks in their markets, a day after Switzerland’s competition watchdog became the first regulator to confirm publicly it had uncovered signs of illegal activity as it announced an investigation into possible forex manipulation by eight banks. Also on Monday, the UK’s financial regulator said it was examining the controls investment banks have in place to prevent traders from rigging benchmarks.
The Hong Kong Monetary Authority has previously only confirmed that it was liaising with overseas regulators, collecting information and making inquiries with banks in the city.
However, on Tuesday it confirmed that it had asked a number of banks in Hong Kong to hire independent lawyers or consultants to review their businesses.
“The HKMA is investigating a number of banks in Hong Kong by requiring them to conduct independent reviews of their FX operations and submit the results to the HKMA,” it said. “The reviews are in progress. The HKMA is also liaising with relevant overseas bank supervisors on the matter.”
