HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centering on trades from more than a decade ago.
ECU Group, a U.K.-based currency investment firm, has filed an application to London’s commercial court asking for HSBC to be required to hand over records relating to three large foreign exchange orders it executed in 2006.
The court filing — seen by the Financial Times — comes after regulators uncovered systematic rigging of the $5 trillion-a-day foreign exchange market by traders at HSBC and several other global banks, which were fined $4.3 billion three years ago. At the time of ECU’s 2006 forex trades, the firm suspected it was being ripped off by HSBC traders “front running” its forex orders. When it complained, the bank promised a full internal inquiry, only to report back that it had found no wrongdoing.
This post was published at Financial Times
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