UK's FCA Close to FX Rigging Settlement Agreements with Several Major Banks

Bloomberg reports that sources close to the investigation have shared information that a settlement in the FX fixing rate rigging scandal is close to conclusion between the Financial Conduct Authority (FCA) ) and Barclays, Citigroup, JPMorgan Chase and UBS AG. According to the information obtained by Bloomberg, the Royal Bank of Scotland (RBS) and HSBC can also participate in the settlement agreement.

Apparently, the UK regulator has taken the matter into his own hands rather briskly, as this news comes only a year after Bloomberg broke the news about alleged wrongdoings by major FX market participants, who conspired to fix the London FX benchmark at 4PM. If we compare this outcome to the Libor fixing investigations, the results are being reached much quicker.

Unfortunately for the banks, UK authorities have not concluded with the matter, as earlier this week reports about the Serious Fraud Office opening a criminal proceeding hit the newswires.

The London Fx fixing benchmark is widely used by financial institutions worldwide to value assets across the spectrum and to determine what they are paying in foreign currencies.