Banks face US currency probe - FT
16 May 2002 | 747 views | 0
The US Justice Department is investigating claims of anti-competitive behaviour in the foreign exchange marketplace against a number of banks that have invested heavily in electronic currency trading platform FXall, according to a report in the Financial Times.
The Financial Times report says the focus of the investigation is an industry claim that the consortium of 17 banks that owns FXall insisted participants in its marketplace could not provide services to rival platforms.
A Justice Department spokeswoman told the paper: "We are looking at the competitive effects of certain joint ventures in the online bond trading industry as well as the foreign exchange trading industry."
According to the FT report, FXall is denying that any restricition was applied to its participants and insists that the system complies with all laws and regulations. In a statement to the paper, a spokesman said: "FXall participants are free to provide liquidity wherever they want."