Trading Led by Funds as Collusion Probes Roil Market: Currencies
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Fund managers and electronic traders for the first time account for more than half the $5.3 trillion-a-day currency market as regulators investigate at least 11 dealers for alleged collusion on benchmark rates.
Hedge funds, pension managers, central banks and smaller lenders made up 67 percent of the increase in daily trading, from about $4 trillion in 2010, the Bank for International Settlements said in its quarterly review yesterday. Their share rose to 53 percent from 48 percent, while dealer banks, which buy and sell from clients, held steady with 39 percent.