Barclays suspends six traders in forex inquiry

Barclays has suspended six traders as part of its internal inquiry into alleged rigging of the foreign exchange market, including its chief currency trader in London.

The six traders work across the bank’s operations and were not solely based in London, two sources familiar with the investigation said. None has been formally accused of wrongdoing.

Authorities around the world – including those in Switzerland, the UK and the US Department of Justice – have opened preliminary investigations into whether some of the biggest banks in the world rigged the $5.3 trillion currency market.

Citigroup and JP Morgan yesterday became the latest banks to confirm they were working with regulators on investigations into foreign exchange trading. UBS and Deutsche Bank have previously disclosed that regulators have asked them for information and Royal Bank of Scotland, which handed over instant-message chats to regulators last month, has suspended two traders in connection with the inquiry.

UBS has also suspended its global co-head of G10 foreign exchange in London, Niall O’Riordan, according to other people with knowledge of the bank’s action. UBS declined to comment.

Barclays' suspensions come after Matt Gardiner, a former senior currencies trader at Barclays and UBS, was put on leave by Standard Chartered this week.

Instant message group
At least one Barclays trader has been part of an instant message group with other senior traders at Citi, RBS and possibly other banks that the UK's Financial Conduct Authority is scrutinising, people close to the situation said.

Barclays is one of five institutions to have already settled authorities’ allegations over manipulation of Libor, a key interbank benchmark rate. As well as Libor and foreign exchange, authorities around the world are examining whether other benchmark rates, including oil-spot markets, have been manipulated. – (Copyright The Financial Times Limited 2013)