Currency Spoofing Is Said to Be New York's Latest Target
- Subpoenas sent to brokers including TFS-ICAP, Tullett Prebon
- Schneiderman probing FX options linked to emerging markets
Currency Spoofing: New Target for NY Attorney General
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The New York attorney general is investigating possible manipulation in foreign-exchange trading, according to a person familiar with the matter, aiming more scrutiny at a market already tainted by scandals that have led to billions of dollars in fines.
The investigation centers on brokers who may be placing fake orders, a technique sometimes called spoofing, according to the person. These practices are also referred to as ghosting, because they create the impression of activity that isn’t really there.