Home » Market Structure » US Debt Breakdown and FX Market Probe

US Debt Breakdown and FX Market Probe

Barry RItholtz, The Big Picture, All Holders of U.S. Treasury Debt, here.

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Tom Schoenberg, Bloomberg, U.S. Said to Open Criminal Probe of FX Market Rigging, here. This could be interesting, most of the FX OTC products got a pass the Dodd Frank discussions so the brokers can continue to internalize a chunk of the market. If FX OTC waddles into an open order book execution world you would want to be in position to take a shot at automated market making, not forgetting the healthy EM spreads. But you may need London and European colos to play fluently.

Earlier this week, European Union antitrust regulators said they were examining the possible manipulation of currency rates by the financial industry, while Switzerland’s Financial Market Supervisory Authority, or Finra, and the nation’s competition commission said they were probing similar potential wrongdoing.

The U.S. Commodity Futures Trading Commission has also been reviewing possible currency market rigging, said a separate person with knowledge of the matter.

The U.K.’s FCA sent requests for information to four banks, including Frankfurt-based Deutsche Bank AG (DBK) and New York-based Citigroup Inc. (C), a person with knowledge of the matter who asked not to be identified said in June.

Royal Bank of Scotland Group Plc (RBS) has handed over records of instant messages to the FCA after concluding a former currency trader’s communications with counterparts at other firms may have been inappropriate, according to two people with knowledge of the matter.

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