Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

UK Treasury chief Osborne to propose criminal sanctions covering foreign exchange trading

FILE- In this file photo dated Wednesday, March 19, 2014, Britain's Chancellor George Osborne poses for the media with the traditional red dispatch box outside his official residence at 11 Downing Street in London, as he departs to deliver his annual budget speech to the House of Commons. Britain's Treasury chief George Osborne on Thursday June 12, 2014, is widely expected to propose new criminal sanctions and tougher oversight to protect the financial markets from manipulation. (AP Photo/Kirsty Wigglesworth, FILE)

Enlarge Image

FILE- In this file photo dated Wednesday, March 19, 2014, Britain's Chancellor George Osborne poses for the media with the traditional red dispatch box outside his official residence at 11 Downing Street in London, as he departs to deliver his annual budget speech to the House of Commons. Britain's Treasury chief George Osborne on Thursday June 12, 2014, is widely expected to propose new criminal sanctions and tougher oversight to protect the financial markets from manipulation. (AP Photo/Kirsty Wigglesworth, FILE)

LONDON - In an effort to protect the integrity of London as a financial hub, Britain's Treasury chief is set to propose Thursday new criminal sanctions covering foreign exchange trading, the latest global market to be hit by scandal.

George Osborne will use his annual speech on the state of the economy to promise tougher oversight of global financial markets that are based in the British capital and have been allegedly manipulated by banks. These markets cover global currency values, interest rates that affect mortgages and credit card rates around the world and the price of commodities like gold.

"I am going to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them," Osborne will say, according to prepared remarks.

The most recent of the scandals in these markets is over the alleged manipulation of foreign exchange markets. Regulators in Europe and the U.S. are investigating a number of banks, and Citigroup and Barclays are among the institutions that have suspended traders.

The government said a joint review by the Treasury, the Bank of England and the Financial Conduct Authority will examine the way the markets — both regulated and unregulated — operate. The review will focus on areas where concerns about misconduct have arisen: fixed-income, currency and commodity markets.

But the Treasury department also warned that the review's recommendations could be made applicable across a wider range of wholesale markets.

The scandal over alleged foreign exchange manipulation could be even more serious that the one surrounding the rigging of the London interbank offered rate, or Libor — a key rate underpinning transactions the world over. That investigation resulted in billions in fines for the banks implicated.

The currency trading investigation could have broader shockwaves, as it goes to the integrity of the markets rather than just a single rate.

The Financial Conduct Authority, which regulates the sector, launched its investigation last year and said it was examining a number of firms. But it is investigating institutions under principles governing institutional integrity and systems, rather than specific rules.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates