Regulator: Banks should have known about chat rooms


Investment banks should have known about foreign-exchange traders using chat rooms that had the potential to rig currency prices, the head of the U.K.’s financial regulator said.

Bloomberg reports that there should have been controls over bank employees that conduct trades and are allowed to submit rates, Martin Wheatley, the Financial Conduct Authority’s chief executive officer, said in an interview with Bloomberg TV’s Angie Lau in Hong Kong.

'It’s incredible that a bank should not know that traders having unmonitored access to private chat rooms to talk to a bunch of mates that they’ve had relationships with or worked with over the years', Wheatley, 55, said.

The FCA, created in April 2013, said in October it was opening a formal probe into currency-rate trading, joining regulators in the U.S. and Switzerland in reviewing the $5.3tril-a-day market.

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U.K. Watchdog Head Says Banks Should Have Known About Chat Rooms

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