Banking Forex Trading Scandal: Giambrone's
Forex Lawyers ready to suefive of the world's
largest banks whichhave been collectively fined
£2.6bn by UK and US regulators over
allegations of forex fraud and foreign exchange market
Following a 13-month investigation by the UK's Financial Conduct Authority (FCA)
into claims of manipulation of foreign exchange rates in the forex
market, five of the world's largest banks have been fined a
total of £2.6bn by the FCA and two US regulators, as the
banks were found to have failed to control their forex business
practices between 2008 and 2013.
"Since the scandal has become public on mainstream media,
we have been receiving numerous enquiries from forex traders and
claimants across the globe seeking to sue financial institutions
for hundreds of millions over global foreign exchange market
rigging" - says
Lillo Boccadutri, an Italian-based associate in Giambrone's
Forex team - "and we are poised to launch legal actions
in Asia and Europe, including the UK. The total aggregate of forex
transactions would run into trillions of dollars since around
£3 trillion worth of currencies is traded on the giant market
every day, dwarfing the stock and bond markets, so any small
movement in the exchange rates could produce millions in damages
for forex traders and investors"
HSBC, Royal Bank of Scotland, Swiss bank UBS and US banks JP
Morgan Chase, Citibank and Bank of America have been fined
£1.1 billion by the FCA, and the US Commodity Futures Trading
Commission (CFTC) has fined them an additional £880 million.
A separate probe into Barclays is continuing. The latest fines are
four times bigger than those imposed following the Libor rigging
A number of traders have been suspended or fired for forex
market manipulation, misconduct involving the buying and selling of
currencies, and for sharing information across the different banks
involved in order to coordinate trading strategies. The Serious
Fraud Office is in the process of preparing potential criminal
charges against those alleged to have masterminded the
"This is the latest scandal to rock the forex
industry" – says
John Norton, Senior Associate in the Forex Litigation
Department at Giambrone, the international law firm. "We are
investigating claims by whistleblowers that these banks were,
between November 2010 and December 2012, told that foreign exchange
traders were misbehaving, but failed to act beyond their own
internal reviews. If this is the case, any forex trader who has
suffered a loss as a result of these unethical practices may seek
compensation for damages."
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As things stand, it's very much business as usual but all will be acutely aware of the pretenders to the financial throne eagerly waiting in the wings to step in should market conditions in the UK become especially unfavourable.
On 3 January, 2017, the CSSF introduced under Circular 02/77 a mandatory template to be used by undertakings for collective investment subject to the Law of 17 December...
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