United States Criminal Probe In Currency Price Rigging


Junior member
11:00:00 est


I say this headline pinned into the news box on Bloomberg while getting my daily morning dose of what's going in markets. There was no follow-up when they flashed the above statement in a red colored news box on screen. However, I do expect to hear something from Bloomberg later today.

I've been harping on this subject for years and it looks like there is actual evidence to go as far as to launch a "Criminal Probe" on the matter. The question in my mind is at what level will this probe take place and which U.S. government agency and/or department will be involved with the probe.

I would think that if the probe is "criminal," than this would reside either with the United States Department of Justice (DOJ) and/or some other government entity or quasi-qovernment entity assisting the DOJ, as the SEC (Securities and Exchange Commission) has no jurisdiction over the currency market within the United States. However, I am not yet sure as to whether or not the SEC can get involved when the matter turns "criminal."

So, this is going to be very interesting to watch unfold. Are they going after FCMs? Will the CFTC and the NFA get involved (I can't imagine they won't). Will they be going after Retail Forex Brokers in the aggregate, or in specific? Are they going after the Liquidity Pools that Retail Forex Brokers use to push their prices to the Retail Trader? What exactly are they going after and what type of "Price Rigging" are they looking for?

Does this related to all those events where a retail trading platform hangs just before a significant move? Does this relate to the intentional spread widening that I've reported related to the FXCM trading platform? Does this related to the constant (built-in) negative slippage that plagues retail trading platforms in Forex? Does it relate to the perpetual re-quotes that are all to frequent an occurrence on retail trading platforms?

How many traders have they spoken with already, that gave them a reason to launch a "criminal probe?" What causes them to announce the investigation as a "Criminal Probe" about "Price Rigging." That is very specific language. They could have called it a number of things but they selected "Price Rigging" as the defining term.

I have lots (tones) of questions and I guess we'll just have to sit tight and let the facts come out.


Junior member
It looks like they are targeting banks. That would be much closer to the "real" Interbank than the fake "Interbank" known as Retail Forex. It would be very nice if they would extend this probe into the fake "Interbank," and clean-up some of these bucket shop pimps passing themselves off as legit Retail Forex Brokers (FCMs, etc.).

Hopefully, there will be a sort of trickle down investigation effect that lands on the doorstep of the Retail Forex business, because that business model is in need of some serious repair. Manipulation goes on inside those Liquidity Pools, too.

For now, it does not look like a probe into the retail side of the business - but I sure hope it turns into one.
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