Further to our previous coverage Barclays have this morning reported, along with their latest figures, that they are reviewing its FX trading covering several years to Aug 2013 after receving enquiries from regulatory and enforcement authorities.
In a separate move RBS have also today announced that they are reviewing how it trades into the forex fixings citing an email sent by a sales team to clients on oct 23rd.
The email said that no RBS traders or proprietary system would take any position on the back of clients orders but that RBS would start ” pre-hedging” orders up to 15 minutes before the fix to protect itself against volatile movements.
RBS says
The email does not reflect final policy and we are clarifying this with our clients
For “pre-hedging” read “front-running”
I shall repeat here that this investigation is not going away in a hurry as regulators start to realise how under-regulated the forex market has been for many many years.