ASIC Launches Investigation into Aussie Markets over Forex Manipulation

The list of global regulators investigating the manipulation of FX rates in a $5.3 trillion-dollar-a-day industry has continued well into 2014, with recent news of the Australian Securities and Investment Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) joining the probe in examining Australian markets for wrongdoing, according to an ASIC statement.

No Charges Lobbied Yet

This represents the first step by Australian regulators in an ongoing investigation that has led to several fines, firings and suspensions at some of the world’s leading financial institutions. Previously, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term manipulation charges have been levied against such leading banking stalwarts as UBS, Deutsche Bank and Lloyds Bank, among others. Although there have been no such allegations or charges yet issued against any entity, it stands as a testament to the scale of the manipulation that has roiled the industry in North America, Europe, Asia and now Australia.

The nature of the probe deals with the price rigging of global benchmarks by banks and traders, namely currency indices that dictate nearly all other forex volume. According to Australian Securities and Investment Commission spokesman, Andre Khoury, in a statement to Reuters, "We are aware of the reports of international regulatory enquiries on potential misconduct in other jurisdictions in relation to the FX market. We will conduct our own enquiries in Australia."

Probes Taking Time to Reach Consensus

Australia now joins the United States, the United Kingdom and an assortment of European regulators in curbing the illicit manipulation of forex benchmarks. The UK’s Financial Conduct Authority (FCA) has since reported that it was unlikely to reach any conclusions, verdicts or prosecutions this year into the potential abuse – more likely attributed to the broad scale of abuse that focuses on collusion though chat rooms and telephone-based trading methods. This represents just another chapter in a lingering probe that shows no signs of slowing down.