Switzerland Investigating Forex Manipulation

Econintersect:   Friday 04 October 2013 FINMA (Swiss Financial Market Supervisory Authority) announced an investigation into involvement of “several Swiss financial institutions” in possible manipulation of foreign exchange (Forex) markets.

FINMA says that the investigation is being coordinated with “authorities in other countries as multiple banks around the world are potentially implicated“.

What you have read is essentially all that was contained in a press release by FINMA.  Here is the full release:

10/4/2013

FINMA is investigating possible manipulation of foreign currency exchange rates

Press release
FINMA is currently conducting investigations into several Swiss financial institutions in connection with possible manipulation of foreign exchange markets. FINMA is coordinating closely with authorities in other countries as multiple banks around the world are potentially implicated. FINMA will give no further details on the investigations or the banks potentially involved.

Contact
Vinzenz Mathys, Media Spokesperson, phone +41 (0)31 327 19 77, [email protected]

Occasional Global Economics Intersection contributor Shah Gilani has an excellent essay today (07 October 2013) summarizing LIBOR and other interest rate fixing scandals and relating them to the new FINMA announcement.  Shah, writing at Wall Street Insights & Indictments, has this to say about specualtion over any alleged manipulation:

I’m not speculating whether there was any FX manipulation at any banks. I’m not speculating whether there was or is any manipulation of the ISDAFIX used to price derivatives (more on that one another time). Nor am I speculating whether there was any manipulation of Libor.

I would never speculate on anything that I already know is true.

John Lounsbury

Sources:

• FINMA is investigating possible manipulation of foreign currency exchange rates (Press release, Swiss Financial Market Supervisory Authority, 04 October 2013)

• The Next Big Rate Manipulation Scandal Is About to Break (Shah Gilani, Wall Street Insights & Indictments, 07 October 2013)