“Lenders including Deutsche Bank, Royal Bank of Scotland, and UBS are reviewing rules on currencies traders making bets with their own money, in another sign of how investigations into the forex market is prompting a crackdown on trading floors.
“The banks are assessing ways to tighten policies on “private account” trading as part of internal probes into possible manipulation in the vast global foreign exchange markets, several people familiar with the situation said.
“Many banks have less strict rules in forex than in other trading areas, mirroring the unregulated nature of the currencies market but also the fact that it is more difficult to draw a line in a market used routinely by most individuals.
“We don’t want to prevent a Sterling trader in London from buying lunch,” one senior banker said summing up the problem.”
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