“The UK’s financial watchdog said it would examine the steps investment banks are taking to prevent traders from manipulating key benchmarks as it intensifies scrutiny of wholesale markets.
“The move was announced in the Financial Conduct Authority’s business plan, published on Monday, in which it requested a boost to its budget from £445m to £452m.
“The regulator, which is involved in a cross-border effort to probe foreign exchange benchmark rigging, said it wanted to examine how firms ensure their traders’ activity is “consistent with our expectations of market conduct”.
“That includes measures to reduce the risk of traders “manipulating prices”. It will look at how banks manage conflicts of interest between their obligations to clients and their own positions.
“The FCA will also look at the effectiveness of the “Chinese walls” that govern flows of information within firms.”
Read full Financial Times article here.