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The Competition Commission (Comco) has launched a probe in whether there has been collusion between different banks in fixing various exchange rates in the foreign exchange (Forex) market.
The Competition Commission has initiated an investigation against the Swiss banks UBS AG and Credit Suisse AG, Zurich Cantonal Bank, Bank Julius Baer & Co. Ltd. and foreign financial institutions, JP Morgan Chase & Co., Citigroup Inc., Barclays Bank plc. and Royal Bank of Scotland Group plc.. There are indications that competition agreements for the manipulation of exchange rates have been taken in forex trading between banks. The possible behaviors concern the following facts: the exchange of confidential information, the general co-ordination in relation to transactions with other market participants agreed price levels, coordinated actions to influence the WM-Reuters Fix and the coordination of the purchase and sale of foreign exchange in terms of certain counterparties. Based on the information currently available, the competition authorities believe that the most important currencies are affected by the behavior displayed.
The competition authority cannot exclude at this stage that other banks and financial intermediaries (brokers) were involved.
The Secretariat of the Competition Commission began a a preliminary investigation on 30 September 2013.
