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."

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