Forex
South Africa to Prosecute Banks for Collusion on Forex Trading
- South Africa to Prosecute Banks for Collusion on Forex Trading
South Africa said it plans to prosecute more than a dozen international and local banks for alleged collusion in foreign currency trading.
The Competition Commission, which has been investigating a case of price fixing and market allocation in the trading of foreign currency pairs involving the rand, has referred the case to prosecution, it said in an e-mailed statement Wednesday.
The Commission named lenders including Bank of America’s Merrill Lynch unit, JPMorgan Chase & Co., BNP Paribas SA, Credit Suisse Group AG, HSBC Holdings Plc and Nomura Holdings Inc.
The commission said that from at least 2007, banks had an agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving the U.S. dollar and rand currency pairing.