U.S. Department of Justice Fixes Charges for Banks Allegedly Rigging FX Fixings

According to sources cited by Bloomberg, the U.S. Department of Justice (DOJ) is handling the matter of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market rigging with urgency, as prosecutors are preparing charges against some major financial companies.

The report outlines that charges against institutions will be brought forward before the turn of the year, while allegations against individuals are more likely to be put into motion sometime in 2015.

People familiar with the intentions of the U.S. Justice Department are looking at 'guilty please' coming from a number of banks, including one based in the U.S. The DOJ has neither confirmed nor denied the claims brought forward by Bloomberg.

The FX fixings manipulation investigation, launched by global regulatory bodies more than a year ago, is not the first case where evidence of industry malpractices has been found. After LIBOR manipulation surfaced back in 2012, this year has been haunted by other major financial institutions wrongdoings.

Merely a month ago the U.S. Commodity Futures Trading Commission passed over evidence to the DOJ about the alleged fixing of the ISDAfix benchmark (ISDAfix (International Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term and Derivatives Association fix), which is a an interest rate benchmark used to determine annual swap rates for swap transactions.

UK’s Serious Fraud Office (SFO) was the latest body to join the FX fixing manipulation investigations after the Financial Conduct Authority‘s (FCA) investigation in the UK, and the criminal proceeding by the U.S. DOJ which was filed this summer.

U.S. authorities allegedly turned multiple bank employees into secret informants about the FX fixing manipulation practices.