Regulator plans 15 reforms to stop forex cheats

Martin Wheatley, the head of the FCA, says forex manipulation may  be as big as the 2012 Libor scandal
Martin Wheatley, the head of the FCA, says forex manipulation may be as big as the 2012 Libor scandal
TIMES NEWSPAPERS LTD

Changes to the way foreign exchange benchmarks are compiled have been tabled by regulators in a bid to reduce the temptation for traders to collude and cheat.

The Financial Stability Board has proposed 15 reforms in the wake of allegations of manipulation, and the launch of dozens of investigations around the world into banks.

Widening the one-minute “window” each day during which trades are used to set forex benchmarks was one of the recommendations of the FSB, which is based in Basel and advises the G20 nations. It also proposed the creation of alternative methodologies, including volume-weighted or time-weighted benchmarks, or benchmarks that are calculated over time periods of as much as 24 hours.

Allegations of market rigging by banks’ forex traders are being investigated