Four Ways Currency Rigging Transformed the $5.3 Trillion Market
- Sales staff withold trade ideas, market info amid scrutiny
- Use of instant messages ebbs while electronic trading rises
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A price-rigging scandal involving some of the biggest banks in the $5.3 trillion-a-day foreign-exchange market is filtering through to customers, according to a report from Greenwich Associates.
The manipulation, conducted through private chat rooms among traders, undermined market confidence and resulted in regulatory probes, firings and fines for financial institutions. It’s also transforming how banks interact with currency clients, according to the Stamford, Connecticut-based consultant, which produces market-share rankings in various asset classes.