Newspaper article International New York Times

U.K. to Look into Currency Markets ; Concern over How Banks Set Benchmark Prices Spurs Regulator to Action

Newspaper article International New York Times

U.K. to Look into Currency Markets ; Concern over How Banks Set Benchmark Prices Spurs Regulator to Action

Article excerpt

Financial Stability Board will examine the process for how foreign exchange benchmarks are calculated after investigations into possible manipulation of the markets.

Britain's Financial Stability Board said Friday that it would review foreign exchange markets in light of a series of investigations into the potential manipulation of currency benchmarks.

The board, a task force set up by the Group of 20 last year, will examine the process for how foreign exchange benchmarks are calculated and analyze market practices surrounding those currency rates.

"Recently, a number of concerns have been raised about the integrity of foreign exchange rate benchmarks," the group said. "The F.S.B. has consequently decided to incorporate an assessment of FX benchmarks into its ongoing program of financial benchmark analysis."

The task force, whose chairman is Mark J. Carney, the governor of the Bank of England, has been working to ensure the transparency and reliability of global benchmark interest rates following a series of scandals involving the London interbank offered rate, or Libor, and other interest rate benchmarks.

Banks have paid billions of dollars of fines in the last two years stemming from the manipulation of those benchmarks.

The board's group examining the currency market will be led by Guy Debelle, assistant governor for financial markets at the Reserve Bank of Australia, and Paul Fisher, executive director for markets at the Bank of England. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.