Get breaking news alerts via email

Click here to manage your alerts
FILE- In this file photo dated Wednesday, March 19, 2014, Britain's Chancellor George Osborne poses for the media with the traditional red dispatch box outside his official residence at 11 Downing Street in London, as he departs to deliver his annual budget speech to the House of Commons. Britain's Treasury chief George Osborne on Thursday June 12, 2014, is widely expected to propose new criminal sanctions and tougher oversight to protect the financial markets from manipulation. (AP Photo/Kirsty Wigglesworth, FILE)
UK to toughen laws for London-based markets
First Published Jun 12 2014 08:38 am • Last Updated Jun 12 2014 08:38 am

London • To protect the integrity of London as a financial hub, Britain’s Treasury chief is set to propose Thursday new criminal sanctions covering foreign exchange trading, the latest global market to be hit by scandal.

George Osborne will use his annual speech on the state of the economy to promise tougher oversight of global financial markets that are based in the British capital and have been allegedly manipulated by banks. These markets cover global currency values, interest rates that affect mortgages and credit card rates around the world and the price of commodities like gold.

Join the Discussion
Post a Comment

"I am going to deal with abuses, tackle the unacceptable behavior of the few and ensure that markets are fair for the many who depend on them," Osborne will say, according to prepared remarks.

The most recent of the scandals in these markets is over the alleged manipulation of foreign exchange markets. Regulators in Europe and the U.S. are investigating a number of banks, and Citigroup and Barclays are among the institutions that have suspended traders.

The government said a joint review by the Treasury, the Bank of England and the Financial Conduct Authority will examine the way the markets — both regulated and unregulated — operate. The review will focus on areas where concerns about misconduct have arisen: fixed-income, currency and commodity markets.

But the Treasury department also warned that the review’s recommendations could be made applicable across a wider range of wholesale markets.

The scandal over alleged foreign exchange manipulation could be even more serious that the one surrounding the rigging of the London interbank offered rate, or Libor — a key rate underpinning transactions the world over. That investigation resulted in billions in fines for the banks implicated.

The currency trading investigation could have broader shockwaves, as it goes to the integrity of the markets rather than just a single rate.

The Financial Conduct Authority, which regulates the sector, launched its investigation last year and said it was examining a number of firms. But it is investigating institutions under principles governing institutional integrity and systems, rather than specific rules.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.