The Financial Conduct Authority (FCA), a quasi-governmental agency in the UK, is conducting investigations alongside several other agencies into a number of firms relating to trading on the foreign exchange (forex) market.
The US, Swiss and Hong Kong regulators have also reported to have launched their own probes to investigate the use of benchmarks in the £3 trillion-a-day market.
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More than 40% of global forex trading is conducted in London. FCA said that investigations are at an initial stage and it will take some time before it concludes whether there has been any misconduct which will lead to enforcement action.
The FCA’s move comes after the Hong Kong Monetary Authority said that it has also started analysing the foreign exchange markets.
Royal Bank of Scotland is said to be among the banks contacted by the regulator.
FCA spokesman said: "As part of this we are gathering information from a wide range of sources including market participants. We will not comment further on our investigations."
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