BOE Reviewing Allegations It Condoned FX Traders’ Conduct

Feb 11, 2014 5:42 am ET

Feb. 11 (Bloomberg) -- The Bank of England is reviewing allegations it told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms, Andrew Bailey told lawmakers in London.

“The Bank of England does not condone any form of market manipulation in any form whatsoever,” Bailey, the chief executive officer of the central bank’s Prudential Regulation Authority, said today. “The governors of the bank have taken claims of the meeting with officials very seriously.”

The central bank’s internal and external lawyers are looking into the allegations after Bloomberg News reported that two central bank staff members met with currency dealers in April 2012 to discuss the practice, Bailey said. The traders’ methods are at the heart of a widening probe into alleged market manipulation.

“We haven’t seen the evidence in the Bloomberg report,” Bailey said. The Bank of England first heard about the allegations in October, he said.

The U.S. Justice Department, the Federal Reserve, the U.K. Financial Conduct Authority, the Swiss Competition Commission and the European Commission are among more than a dozen authorities on three continents investigating currency-trading practices.

--Editors: Lindsay Fortado, Edward Evans