RBS reviewing FX trading policy

RBS building

Royal Bank of Scotland (RBS) is reviewing how it trades in the minutes before key foreign exchange benchmarks are set amid a regulatory probe into possible manipulation of the $5.3tril-a-day market.

Bloomberg reports that RBS’s foreign exchange sales team contacted some clients, pledging the bank won’t share details of their orders or use them to make proprietary bets, according to a 23rd October e-mail, which was read to Bloomberg News.

'We are currently considering processes around the benchmark service', RBS spokeswoman Sarah Small said in a statement. 'The e-mail does not reflect final policy and we are clarifying this with our clients'.

RBS handed over records of an instant message group to U.K. regulators after concluding a former senior currency trader’s communications with counterparts at other firms were inappropriate, two people with knowledge of the matter said this month.

In June, Bloomberg News reported that dealers pooled information about their positions through instant messages, executed their own trades before client orders and sought to manipulate the benchmark WM/Reuters rates by pushing through trades around the 60-second windows when the benchmarks are set.

To access the complete Bloomberg article hit the link below:

RBS Said to Review Currency-Trading Practices Amid Global Probe

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image: © Mark Ramsey

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