Thursday, an international Parisian bank has been charged $350 million by the New York's Department of Financial Services. BNP Paribas has been caught allowing various traders and salespersons in its main trading centers to alter foreign exchange prices, as stated by reports.
New York's bank regulator found that the bank had ineffectively failed to manage its international foreign exchange division sufficiently.
In both New York and London, most of the forex traders collaborated in a virtual chat rooms to control the exchange rates, the officials stated.
Last Wednesday, The New York Department of Financial Services stated that from 2007 to 2013 and no less than a dozen of BNP Paribas traders had deviously altered the foreign exchange market rates, by means of chat rooms and bogus trades in exchanges such as the South African rand, Hungarian forint and Turkish lira.
“Participants in the foreign exchange market rely on a transparent and fair market to ensure competitive prices for their trades for all participants,” Superintendent of DFS, Maria Vullo told reports. “Here paid little or no attention to the supervision of its foreign exchange trading business, allowing … traders and others to violate New York State law over the course of many years and repeatedly abused the trust of their customers.” Vullo Added.
Employees engaged in such scheme have been reportedly fired, resigned or disciplined. BNP Paribas told in a statement that it "deeply regrets" the employees' delinquency, which of course lead to some terminations.
According to sources, Deutsche Bank and other banks are still under examination by DFS interrelated to their automated foreign exchange platforms which Deutsche Bank refused to comment on.
Further banks have been also penalized by more supervisory body for related schemes, counting HSBC and JPMorgan Chase.
In BNP’s latest trading session, BNP started trade at 36.06 and closed at 36.22. The candle had a high of 36.37 and a low of 35.89.
As for its trading indicators, RSI Level, it had a sharp down turn to 58.70. For its Coppock Curve, the indicator is currently plunging down further, but the indicator is still on a positive range of 6.15 so a buy would still be a safe move.
FSM News is a daily updated news website about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. FSM News is here for you.