Bloomberg: FX Markets Spoofing Under Investigation by NY Attorney General

According to a Bloomberg report published late this afternoon, the New York attorney general is the latest government body to take action relating to the 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 markets. The difference this time around is that the targets of the investigation are not major banks but inter-dealer brokers.

In contrast to the manipulation charges which major banks have been facing, the targets of this investigation will most likely be brokers who are engaging in Spoofing Spoofing Spoofing deals with information or network security, which is defined as a situation in which an entity or program successfully falsifies data to gain an illegitimate advantage.This falls into the category of scammers and hacking. Spoofing is the act of disguising an email or other internet communication, making the receiver think that it is coming from one source when it is from another. Spoofing, in many cases, allow fraudsters into your computer or network by deceit. This can apply to emails Spoofing deals with information or network security, which is defined as a situation in which an entity or program successfully falsifies data to gain an illegitimate advantage.This falls into the category of scammers and hacking. Spoofing is the act of disguising an email or other internet communication, making the receiver think that it is coming from one source when it is from another. Spoofing, in many cases, allow fraudsters into your computer or network by deceit. This can apply to emails Read this Term. The practice has become known as traders have been using entry orders to simulate excessive demand or supply in certain futures, options and shares.

The report by Bloomberg cites sources familiar with the matter that allege that the targets of the investigation are fake bids and offers that have been placed in option contracts on emerging marker currency pairs.

While no official comments have been received from the parties involved, the article claims that the office of Eric Schneiderman sent subpoenas for records to a number of inter-dealer brokers, amongst which are ICAP, Tullett Prebon Plc, BGC Partners Inc. and GFI Group Inc, which is owned by BGC Partners.

Roughly two years after the explosion of the foreign exchange manipulation scandal, another scandal involving spoofing could further dent the reputation of the transparency of the foreign exchange market.