Foreign exchange benchmarks are to be reviewed by the global leader in financial regulation, the latest front to be opened in a global probe into all the allegations of the abrupt changes in price in the world’s biggest financial market.

The Financial Stability Board (FSB), whose tasks is to coordinate regulations for the group of 20 (G20) led the economies and is headed by the Bank of England who in a prior statement will be opening its own investigation. It is the most recent step in an investigation into allegations that a handful of veteran traders exchanged market-sensitive information and conspired in manipulating benchmark currency rates.

The U.S. Department of Justice and British Financial Conduct Authority are among the leaders in the investigation into potential wrongdoing in the $5.3 trillion pounds-a-day market.
The U.S. Federal Reserve is likewise involved in the probe, several sources with knowledge of the investigation have reported Reuters although the extent of such inventory in still unclear. Just recently, a number of concerns have been raised regarding the integrity of foreign exchange rate benchmarks, with the regulatory task force for the G20 indicating their plans in a statement last week.

The FSB decided to incorporate an evaluation of FX benchmarks into its ongoing programme of financial benchmark analysis. The scale of the query and the scale of the allegation were outlined last week by the FCA chief executive who told British legislature that the investigation would last until the following year and the allegations were likewise as bad as already is.

The trader’s manipulation of London Interbank Offered Rates, benchmark global interest rates resulted in banks shelling out $6 billion worth in fines and settlement. The recounting foreign exchange controversy has already seen more than 20 trades was put on leave and no charges of any kind were brought yet.

London is technically the focal point of the global market which accounts for approximately 40 % of the $5.3 trillion traded on a average day. Most of the major banks in the industry are presently cooperating with regulators, handling over emails and electronic chat room communications between investors and traders alike.

The FSB spokesperson told Reuters that the FSB would be informing the G20 central bankers and finance ministers meeting in Australia anytime next week that the FX review was currently underway.

The board has already set-up a group to learn on how the most plausible move from a quote to a market transaction-based system for compiling interest rate benchmarks. The FSB’s foreign exchange group will be chaired by the incumbent assistant governor at the Reserve Bank of Australia alongside by the executive director for markets at the bank.
Finally, the FSB mentioned that the recommendations would be conveyed to the G20 leaders during the upcoming summit in Brisbane sometime in November.