BNP Paribas Slapped with $350m Fine After FX Trading Manipulation

French banking giant BNP Paribas has come to terms with the New York’s Department of Financial Services, settling for a sum of $350 million to the regulator after failing to properly supervise its global FX business.

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The Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term is the latest for BNP Paribas, which has done a fine enough job of staying out of any trouble in recent months. Indeed, the group has largely steered clear of fines in the banking sector, with other rival lenders seeing the majority of attention for other transgressions. The last major setback the group suffered was last year when the SEC imposed a $4.0 million fine on its Wealth Management Unit.

Rogue Act?

Its most recent legal issue however stemmed from its allowing more than a dozen traders and salespeople to successfully manipulate FX prices, according to a Reuters report. This was accomplished due to failed supervisory measures, which were unable to properly monitor the individuals responsible for manipulation in New York.

The New York’s Department of Financial Services determined that a few BNP traders and salespeople managed to collude in online chat rooms with the ultimate intent of manipulating the currency prices. As such, traders executed fake trades to influence 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 rates across select emerging market currencies, also improperly sharing confidential customer information with traders at other large banks.

The actual period of the misconduct dated back to between 2007 and 2011, per a regulatory statement. As the measures took place around a decade ago, BNP Paribas likely avoided an even larger fine given that several of these employees have already been terminated, while the bank also pledged to improve its oversight measures.