FX Rigging Trial to Begin Next Year in South Africa as Regulator Needs More Time

South Africa is stepping up its 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 rigging probe, but more than three years after Western financial watchdogs issued multi-billion dollar fines to global banks. The SA Competition Commission today said it will need more time to conclude an investigation into whether banks took part in a cartel to rig currency quotes for customers who were buying or selling its local currency.

The South African watchdog will allow the legal processes initiated to run their course early 2019 and will continue to monitor developments closely in accordance with its mandate.

“Our case against the banks is very strong and we want to deal with all these technicalities so the matter can go on trial, maybe by the second quarter of next year,” it said.

The move signals that South Africa’s watchdog may be gearing up to open 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 although it did not indicate whether the fines will be imposed on the global revenues of each bank or just to their domestic arms. Either way, the figure is expected to be a starting point in settlement discussions, with some banks to be asked for more and some less.

Following a string of similar lawsuits in the US and UK, the Competition Commission believes the banks in question acted in concert to manipulate either prices for bids, offers or spreads for spot trades involving the rand and the US dollar.

While the filing didn’t provide details of the investigation, which was launched back in April 2015, the commission said that Competition Tribunal prosecutors will be looking into whether banks conspired to fix prices quoted to clients for buying and selling currencies, known as a bid-ask spread.

The Commission added that the cases will be brought under anti-trust rules, which effectively limit the class action to South African claimants.

A further 18 banks have been involved in the case. The list includes Investec, JP Morgan, BNP Paribas, Credit Suisse Group, Commerzbank AG, Standard New York Securities Inc, Macquarie Bank, Bank of America Merrill Lynch, ANZ Banking Group Ltd, Standard Chartered Plc, and Barclays Africa (Absa), part of the Barclays Plc.