On 19 December 2014, the Hong Kong Monetary Authority (HKMA) announced the outcome of its investigation into the foreign exchange (FX) trading operations in Hong Kong.
Our bulletin summarises the HKMA’s investigation, its key findings and the action taken by the HKMA. It also sets out recommended actions for banks in Hong Kong in light of the findings.
The investigation found one suspected attempt to influence an Asian FX benchmark fixing and a failed attempt to influence a USD/HKD spot rate, but did not find any collusion or rigging of the Hong Kong FX benchmark fixing. The HKMA also identified certain control deficiencies during its investigations stemming from communication indiscretions. It promised to continue monitoring the banks’ conduct and to follow up on findings by other regulators which may be relevant to the HKMA’s investigation. The HKMA announcement can be accessed here.
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