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SFO begins investigation into Forex market

25 July 2014

The SFO has begun an investigation into the Forex market on the basis of allegations of fraud.

The criminal investigation will look into the actions of traders allegedly using instant messaging platforms to engage in fraudulent activity such as fixing benchmark prices, which are used for trillions of dollars of investment and trade.

The SFO has officially declared the investigation open, stating that: ‘The Director of the Serious Fraud Office has today opened a criminal investigation into allegations of fraudulent conduct in the foreign exchange market.’

Speaking to ¬Governance + Compliance, Nigel Cannings, technical director at Chase Information Technology Services Limited said, ‘the Forex scandal has [made] the banks look to how they better monitor their trader communications, particularly IM traffic, which has been the focus of the investigation.

‘We are aware of a number of high-priority projects to put in place smart monitoring tools to help compliance departments better sift and analyse the enormous volume of data. In an ideal world, they would be bringing all communication together for analysis (particularly telephone calls), but they are having to do it one channel at a time due to the need to shift information governance from a vertical silo-based approach where each data stream lives in its own world, to a horizontal one where data is stored and aggregated centrally.’

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