No FX rigging in Hong Kong, declares HKMA

The Hong Kong Monetary Authority, has found no evidence of rigging of the foreign exchange markets in Hong Kong.

The Hong Kong Monetary Authority (HKMA), the de facto central bank of Hong Kong, has not found evidence of rigging of the foreign exchange markets in Hong Kong.

It announced the outcome of its investigation into the foreign exchange trading operations of ten banks in Hong Kong. They were, Bank of America, Barclays Bank, BNP Paribas, Citibank, Deutsche Bank, HSBC, JPMorgan Chase Bank, Royal Bank of Scotland, Standard Chartered Bank, and UBS.

The aim of the investigation was to ascertain whether the banks had engaged in any rigging of FX benchmark fixings or collusion from 2008 to 2013.  

The investigation applied the methodology used by regulators elsewhere in the world for similar investigations.  The HKMA did find evidence of isolated attempts by Deutsche Bank and Standard Chartered Bank traders to unfairly influence a market, but neither attempt succeeded.

The banks were required to appoint lawyers to examine communication records for the period concerned and report findings.  Approximately 40 million internal and external communication records were covered.  

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