Hong Kong, New Zealand investigate banks for alleged FX manipulation
By Rachel Armstrong
(Reuters) - Regulators in Hong Kong and New Zealand said on Tuesday that they are investigating banks' conduct in the foreign exchange market as part of an investigation tied to the global probe into FX markets.
The move shows that the regulatory crackdown on the $5.3 trillion-a-day-market is escalating and continues to broaden from Europe to other parts of the world.
The Hong Kong Monetary Authority (HKMA) said in a statement after an inquiry from Reuters that it is requiring several banks to conduct independent reviews of their FX divisions and to then send the HKMA the results.
"The HKMA is investigating into a number of banks in Hong Kong," an HKMA spokeswoman said in the statement.
A spokesman for New Zealand's Commerce Commission said it had also started looking into the matter.
"We've got an investigation but that's all we're saying because it's an active investigation," a spokesman for the commission told Reuters.
Regulators in Hong Kong, the third largest foreign exchange market in Asia after Singapore and Tokyo, said in October they were in contact with foreign regulators about the matter, but this was the first time they have confirmed actual investigations are taking place.
Market watchdogs around the world are looking closely at traders' behavior on a number of key benchmarks, spanning interest rates, foreign exchange and commodities markets. Continued...