Zurich-based UBS wants to encourage more customers to trade electronically. REUTERS/Michael Buholzer/Files
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Banks to overhaul FX trading after scandalsThe world's biggest banks are overhauling their currency trading practices to regain customers' trust and preempt regulators' efforts to force changes on an industry tarnished by allegations of manipulation. Barclays PLC, Deutsche Bank AG, Goldman Sachs Group Inc., Royal Bank of Scotland Group PLC and UBS AG, which together account for 43 percent of foreign-exchange trading by banks, are introducing measures to make it harder for dealers to profit from confidential customer information and take advantage of clients in the largely unregulated $5.3 trillion-a-day currency market, according to sources with knowledge of the changes.The banks are acting after authorities on three continents opened probes into allegations that dealers had leaked confidential client information to counterparts at other firms and colluded to rig currency benchmarks used by money managers.Only the trader handling the order at the reference rate is able to see it.Spokeswomen for RBS and London-based Barclays said that they were not able to comment on compliance procedures.Before regulators started their investigations, most banks' order books were visible to employees on the desk, and traders and salespeople would routinely pass on information about large deals to their best clients in a bid to secure future business, according to six people with knowledge of trading practices.
FOLLOW THIS ARTICLE