BoC considers loonie exchange-rigging

The Bank of Canada is looking into whether the way the Canadian dollar is benchmarked can be manipulated, reports Bloomberg.

Read: Banks suspend traders amid wider market rigging probe

The bank was prompted by an ongoing currency scandal in the New York and London that has resulted in the firing or suspension of dozens of traders, and has recently implicated the Bank of England.

The way Canada sets is currency benchmark leaves foreign exchange markets vulnerable to manipulation, state internal bank documents which were obtained by Bloomberg under access to information laws.

The Bank told Bloomberg it takes the possibility of currency manipulation very seriously, but hasn’t found any evidence of tampering with Canadian rates so far.

Read more here.

Also read:

Are options prices affected by currency manipulation?

More traders suspended in currency probe

U.S. regulators probe banks’ currency trades

BoE may have known about forex rigging

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.