Credit Suisse is going to face a class-action lawsuit brought by investors in the United States for foreign exchange (forex) rigging as a New York court judge refused the bank’s appeal for the dismissal of the case on Tuesday.
Several institutional investors accused that Credit Suisse traders have shared sensitive and non-public price information with counterparts in other banks, thus effectively rigging the currency prices in a $6.6 trillion-a-day
forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term market.
These banks operated as cartels in fixing the forex price and even shared information in chat rooms with names like Yen Cartel.
Credit Suisse is the last bank that remained from the alleged cartel to face the investors’ allegations in the litigation that started in 2013 as 15 other banks successfully settled changed by paying $2.31 billion.
Some of the banks also faced regulatory probes and eventually fines of more than $10 billion. Many traders involved in the cartel were also convicted, whereas others are facing indictments.
The Court Will Decide the Fate
Credit Suisse approached the court, claiming that it was not a part of any global conspiracy that attempted to rig the spreads of forex. The court, however, said that it is premature to accept such claims of the bank.
Further, the New York judge also rejected the push of the investors to hold the bank liable. “Questions remain about the scope of the shared illegal goal and extent of the conspirators’ mutual dependence and assistance,” Judge Lorna Schofield said.
Meanwhile, the bank remains strong in its position and is confident with its defense in the case.
“We continue to believe that Credit Suisse has strong legal and factual defences, and we look forward to establishing those at trial,” Credit Suisse stated.
The Suisse bank is also about the defend itself in a Swiss court as the country’s prosecutors are seeking around $45 million in penalties from it for serious failure in anti-money laundering regulations, Finance Magnates reported earlier.
Credit Suisse is going to face a class-action lawsuit brought by investors in the United States for foreign exchange (forex) rigging as a New York court judge refused the bank’s appeal for the dismissal of the case on Tuesday.
Several institutional investors accused that Credit Suisse traders have shared sensitive and non-public price information with counterparts in other banks, thus effectively rigging the currency prices in a $6.6 trillion-a-day
forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term market.
These banks operated as cartels in fixing the forex price and even shared information in chat rooms with names like Yen Cartel.
Credit Suisse is the last bank that remained from the alleged cartel to face the investors’ allegations in the litigation that started in 2013 as 15 other banks successfully settled changed by paying $2.31 billion.
Some of the banks also faced regulatory probes and eventually fines of more than $10 billion. Many traders involved in the cartel were also convicted, whereas others are facing indictments.
The Court Will Decide the Fate
Credit Suisse approached the court, claiming that it was not a part of any global conspiracy that attempted to rig the spreads of forex. The court, however, said that it is premature to accept such claims of the bank.
Further, the New York judge also rejected the push of the investors to hold the bank liable. “Questions remain about the scope of the shared illegal goal and extent of the conspirators’ mutual dependence and assistance,” Judge Lorna Schofield said.
Meanwhile, the bank remains strong in its position and is confident with its defense in the case.
“We continue to believe that Credit Suisse has strong legal and factual defences, and we look forward to establishing those at trial,” Credit Suisse stated.
The Suisse bank is also about the defend itself in a Swiss court as the country’s prosecutors are seeking around $45 million in penalties from it for serious failure in anti-money laundering regulations, Finance Magnates reported earlier.
Source: https://www.financemagnates.com/institutional-forex/credit-suisse-to-face-class-action-lawsuit-in-the-us-for-fx-rigging/