Barclays Fine Spurs U.K. Scrutiny of Derivatives Conflict
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Britain’s markets regulator plans to scrutinize the conflicts of interest banks face when they use derivatives after fining Barclays Plc for manipulating the price of gold to avoid a pay-out to a client.
The Financial Conduct Authority will examine how investment banks manage such conflicts in coming months, with so-called barrier options “one of the most obvious examples of a conflict,” Chief Executive Officer Martin Wheatley, 55, said in a June 4 interview in New York.