A panel of global regulators, responding to a manipulation scandal that's shaken the financial industry, backed measures to make it harder for traders to exploit key benchmarks in the US$5.3 trillion-a-day currency market.
The Financial Stability Board (FSB) said it supports extending the width of the trading window used to calculate foreign-exchange (FX) rates to five minutes in a rule overhaul that also includes measures to address potential conflicts of interest between banks and their clients.
"The incentive to manipulate is always going to be there: What we have to make sure is the ability to actually do it is reduced," Rosa Abrantes-Metz, a professor at New York University's Stern School of Business, said in a telephone interview. The FSB report "talks about many things, such as no sharing of information among traders beyond what is necessary, but that should have been in place for a long time."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.