UK To Toughen Laws To Avoid Foreign Exchange Market Manipulations!

UK is still the center of the universe when it comes to the currency markets. However recently UK has been hit by foreign exchange market fixing scandals involving some big banks. In an effort to protect the reputation of the UK financial markets and keep it as the hub, UK Chancellor of the Exchequer is proposing tougher measures.

The most recent of the scandals in these markets is over the alleged manipulation of foreign exchange markets. Regulators in Europe and the U.S. are investigating a number of banks, and Citigroup and Barclays are among the institutions that have suspended traders.

The scandal over alleged foreign exchange manipulation could be even more serious that the one surrounding the rigging of the London interbank offered rate, or Libor — a key rate underpinning transactions the world over. That investigation resulted in billions in fines for the banks implicated.

The currency trading investigation could have broader shockwaves, as it goes to the integrity of the markets rather than just a single rate.

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