The U.K.’s Investment Management Association is pressing regulators to provide more information about the alleged manipulation of the foreign-exchange market, said two people with knowledge of the matter.
Bloomberg reports that the trade group wrote to the Financial Conduct Authority in recent weeks, asking how it should respond to clients’ inquiries about whether currency markets are being rigged, said the people, who asked not to be identified because the correspondence is private. The FCA replied that it couldn’t comment on a current investigation, one of the people said.
Fund managers are among the biggest clients of banks’ foreign-exchange desks and are at risk of being the biggest losers from any rigging of the market. The FCA opened a formal probe on 16th October, four months after Bloomberg News reported that some traders had pooled information about their positions with counterparts at other firms and tried to manipulate the benchmark WM/Reuters rates.
'We deserve to know which mechanism is involved in any wrongdoing', said Colin McLean, founder and chief executive officer of SVM Asset Management. 'Even very small errors or issues could involve large sums of money in absolute terms and that is why it’s a concern'.
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