Forex Scandal Deepens, Deutsche Bank Moves To Suspend Latin-Based Traders

The world’s largest foreign exchange dealer Deutsche Bank AG, has suspended a number of currency traders following an ongoing investigation that recently unveiled fraudulent charges of rate rigging.

deutsche-bankThe world’s largest foreign exchange dealer Deutsche Bank AG, has suspended a number of currency traders following an ongoing probe that recently unveiled fraudulent rate rigging, via a Bloomberg statement.

The gravity of the ramifications is quite large given that Deutsche Bank tops a list of a $5.3 trillion dollar forex industry – recently the company had been under investigation by a number of regulators in one of the largest probes in recent memory to roil the financial industry.

Scandal Spreads To Latin America, Argentine Peso An Accessory To Fraud

argenIn particular, details have emerged out of the recent bout of suspensions, revealing that the traders accused of rate-fixing dealt with the Argentine peso and were based out of Latin America, the first example in the region the probe has dug up thus far. While the peso is not as regularly traded as other currencies such as the dollar, euro, or yen, the currency actually retains a higher degree of vulnerability given its lack of oversight when weighed against more broad-based exchanges.

According to Klaus Winker, a Frankfurt-based spokesperson at Deutsche Bank, “Deutsche Bank has received requests for information from regulatory authorities that are investigating trading in the foreign exchange market. Furthermore, the bank is cooperating with those investigations, and will take disciplinary action with regards to individuals if merited.”

One method used by Deutsche Bank involved the examination and dissemination of employee’s electronic communications and transactions in accordance with regulatory authorities – consequent findings or episodes of fraud will result in the suspension or reinstatement, pending regulatory review.

Forex Industry Bellwethers Not Exactly Leading By Example

dbThis latest news muddies the water of the forex industry, already rife with scandal and investigations by global regulators. As such, the recent suspensions cast an even darker shadow over Deutsche Bank, one of twelve other firms to have been put under the microscope by watchdog organizations and regulators. As recently as June, it was revealed that several banks were suspected of assimilating information though messages services, utilizing orders from clients to dictate and manipulate forex benchmark and interest rates. “Benchmark manipulation allegations are sapping at the very core of what we are trying to do,” noted Anshu Jain, a Co-Chief Executive Officer at Deutsche Bank in a subsequent statement last October.

Few industries maintain the global latitude and clout as forex, with Deutsche Bank (15.2%), Citigroup Inc. (14.9%), Barclays Plc (10.2%) and UBS AG (10.1%), controlling over half of the entire foreign exchange market, according to research by Euromoney Institutional Investor Plc. In a blow to the integrity of the industry, all four of the aforementioned banks have already been the subject of regulatory discipline following an ongoing investigation. Indeed, the recent suspensions and accusations have been directed at nearly all levels as well – last week Citigroup axed its head of European spot trading, Rohan Ramchandani.

It is thus far unclear whether the most recent round of Latin-based suspensions have any connection with previous scandals. Regulatory authorities already have issued numerous verdicts on Libor and ISDAfix, culminating in a record numbers of fines.

Parallel Investigation To Be Launched By Bafin?

bafinIronically, despite the growing list of probes against the largest banks, German financial regulator, Bafin released a statement back in October indicating that it had no plans to open up a unique probe into forex manipulation allegations given that there was no evidence that German banks were doing anything wrong. However, according to Bafin spokesperson, Ben Fischer in an email today, “Bafin is presently investigating the facts and has kept an eye on the currency trading issues since the summer.” Ultimately, the recent events surrounding Deutsche Bank are likely to elicit some type of response or curiosity from Bafin.

TAGS: , , , , , , , , , , ,

Related posts:

More information on this subject is found in the latest Forex Magnates Quarterly Report

Comments are closed.

We do not store your information and we do not disclose our sources.

Leave your name/email (not required) if you'd like to be contacted about this story (will not be disclosed):

Digital Currencies

Expert Articles

Fintech, Startups & New Products

ibinex logo

Coming Soon! Specialized Bitcoin Liquidity for MT4 Brokers from Ibinex

Still in its infancy, bitcoin trading on MetaTrader 4 is a growing product, popping up on trading platforms at various brokers. The cryptocurrency got a...

Bitcoin wallet platform Gem gets $2 million in funding, hires former PayPal exec as COO

Gem, based in Venice and formerly known as BitVault, has secured $2 million in a major funding round. The round was led by First Round Capital...

Bitcoin Trading- BTC/USD Technical Analysis, Sept 17: BTC breaks support, falls sharply

Bitcoin (BTC) has fallen sharply after breaking through its support level of $460 on BTC-e 24h ago. The support level had long served as a...

More Digital Currencies


British Pound Waiting for Scottish Vote for Clues on Next Move

On Thursday, after a 307-year-old union with England and Wales, Scottish voters age sixteen and over will decide in a referendum that will ask the question:...


Warning: Extreme Volatility Coming

For those who have been wishing for more volatility, your wish is about to come true. This week’s Scottish referendum vote will cause widespread carnage...

Mitch Eaglstein

Prime Brokerage A Rising Force In Middle East?

FX prime brokerage in the Middle East in on the rise for a variety of reasons. Dubai, for example, with its strategic location between Asian...

More Expert Articles

ibinex logo

Coming Soon! Specialized Bitcoin Liquidity for MT4 Brokers from Ibinex

Still in its infancy, bitcoin trading on MetaTrader 4 is a growing product, popping up on trading platforms at various brokers. The cryptocurrency got a boost last year as multiple technology providers, including Leverate and Gold-I began to offer pricing …
Read more


ITG Brings Increased Transparency to the FX Market, Introduces an FX Volatility Index

The freely available tools by ITG FX Volatility Cost Index and the upgraded ITG FX Trading Cost Index, open the scope for foreign exchange traders to estimate their trading costs and potential price slippage.
Read more

More Fintech, Startups & New Products

Binary Options

Forex Research

Recent Comments


Dukascopy Now Offers Binary Options for White-Label Brands with 90% Payouts

Dukascopy enters the binary platform provider business to compete directly with the many developers in the crowded field such as Spotoption, Techfinancials, Tradologic,Marketspulse, PandaTS, Leverate and more.
Read more

Breaking: Binary Options Broker EZTrader Files for Listing on OTCQB Market

Shares of pink sheet listed company behind EZTrader, Win Global Markets Services Ltd rallied over 15% overnight, discloses a five-fold increase in revenues for the first half of 2014 to $7.95 mln.
Read more


Japanese Binary Options Trading Continues to Recover, Volumes up 28% in August MoM

Second month of trading volume increases for binary options in Japan. During August 2014 the trading reached ¥68,828,888,822. The figure is a complete recovery to the May 2014 trading volume level.
Read more

Note: Copyright © 2014 Forex Magnates. All rights reserved.

All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Forex Magnates. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at Forex Magnates are those of the individual authors and do not necessarily represent the opinion of Forex Magnates or its management. Forex Magnates has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Forex Magnates, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Forex Magnates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2014 "Forex Magnates Inc. - Home of the Forex Elite" All Rights Reserved.