The Swiss Financial Market Supervisory Authority (FINMA) said that it is conducting investigations into several Swiss financial institutions (FIs) in connection with possible manipulation of foreign exchange (FX) markets.
FINMA also said it is coordinating closely with authorities in other countries as multiple banks around the world are potentially implicated. The Swiss regulator added that it would not give any further details on the investigations or the banks potentially involved.
UBS and Credit Suisse declined to comment while a spokesman for Zuercher Kantonal Bank said the bank was currently not aware of a FINMA investigation.
The UK’s financial watchdog, the Financial Conduct Authority (FCA), said in June it was looking into a report that traders manipulated benchmark FX rates that are widely used by companies and funds. A FCA spokesman declined to confirm whether it was working with FINMA on its probe.
Financial benchmarks have come under increased global scrutiny after the discovery that a key benchmark interest rate had been rigged. To date, US and UK authorities have charged seven men and fined four financial firms about US$2.7bn in the investigation into the manipulation of the London interbank offered rate (Libor), used as a benchmark for more than $300 trillion of financial products.
The UK Serious Fraud Office (SFO) indicated this week that it was about to charge more individuals in connection with the Libor scandal.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.