Cheating traders and foul play ?

Money On Hook

Here we go again.

Bloomberg News reports that in the space of 20 minutes on the last Friday in June, the value of the U.S. dollar jumped 0.57% against its Canadian counterpart, the biggest move in a month.

Within an hour, two-thirds of that gain had melted away.

The same pattern - a sudden surge minutes before 4 p.m. in London on the last trading day of the month, followed by a quick reversal - occurred 31% of the time across 14 currency pairs over two years, according to data compiled by Bloomberg. For the most frequently traded pairs, such as euro-dollar, it happened about half the time, the data show.

The recurring spikes take place at the same time financial benchmarks known as the WM / Reuters (TRI) rates are set based on those trades. Now fund managers and scholars say the patterns look like an attempt by currency dealers to manipulate the rates, distorting the value of trillions of dollars of investments in funds that track global indexes.

Bloomberg News reported in June that dealers shared information and used client orders to move the rates to boost trading profit. The U.K. Financial Conduct Authority is reviewing the allegations, a spokesman said.

To access the complete Bloomberg article hit the link below.

Currency Spikes at 4 P.M. in London Provide Rigging Clues

U.S. Bank Legal Bills Exceed $100 Billion

FHFA Said to Seek $6 Billion Minimum in JPMorgan Talks

image: © Tax Credits

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts