Lord Grabiner Reaches out to Senior FX Traders over Benchmark Rigging Allegations

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Lord Grabiner Reaches out to Senior FX Traders over Benchmark Rigging AllegationsSenior forex dealers at leading financial institutions will be interviewed by Anthony Grabiner concerning a Bank of England meeting that they participated in 2012 as part of his investigation into whether the traders knowingly manipulated or condoned forex benchmark rate riggings.

Mr. Grabiner wants to know what the BOE knew concerning the benchmark-manipulation claims just before regulators in various corners of the world launched investigations. Mr. Grabiner has summoned the traders to appear for the interviews through letters. Lord Grabiner QC was hired to investigate whether BOE officials advised forex traders that it is okay to share confidential customer orders with peers in an April 2012 meeting.

Most regulators have been investigating the issue, which has seen 25 dealers sent on compulsory leave, fired or suspended. BOE has sent one employee on a compulsory leave over the matter.

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The results of the interviews will be shared with regulators such as the U.K. Financial Conduct Authority, which is currently investigating the rigging allegations, reported Bloomberg.

Lord Grabiner is said to have reached out to dealers who composed a BOE Committee called the chief dealers’ subgroup, which used to hold meetings with central bank officials to debate market issues and trends. The minutes of the April 2012 meeting unfortunately didn’t include the list of those who attended.

Lord Grabiner however told lawmakers two months ago that he will contact traders who composed the committee, though he had no power to force them to talk to him. He is carrying out the review along with a London-based law firm Travers Smith LLP. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com