(Reuters) - in Singapore bank internal audit has found evidence of business collaboration, in foreign exchange market, control prices and inquires source of knowledge.
Find a global loan interest rate scandal to expand into new markets, such as dust London interbank Banks, bank according to the supplementary review, and make regulators and institutions to consider how to set up some key interest rate and the currency exchange rate.
Detector found evidence that many Banks from the traders mutual communication rate, should be referred to the local bank association without principal delivery forward exchange (no principal delivery forward pricing), the purpose is to their trading books electronic communications.
"Traders said businessman, he said:" I need you to help me, I need correction is low, said: "the bank sources, who asked not to be named the confidentiality of the comments.
No principal delivery forward derivatives, let the enterprise and investors hedging and speculation, emerging market currencies exchange control, for foreigners, it is difficult to directly involved in the spot market.
Settled in us dollars contract, so there is no communication base money, but they will affect spot rate.
Monetary authority of Singapore ordered bank review fixed program to help local interbank lending rates and NDF price last year, the United States and British regulators strike control London interbank offered rate (LIBOR), used to set a benchmark interest rate is in 600 yuan left right trillions of dollars in securities.
The investigation of Banks London interbank for 15 billion dollars, ubs (UBSN. VX: prices) and barclays (BARC. L) $451 million fine for control rate. From London interbank Banks, in the United States and Britain's regulatory probe also revealed in Tokyo, Hong Kong and Australia's benchmark interbank interest rates to control the evidence.
Bank regulators has started in the UK and other European place trying to reform London interbank Banks and other Banks interbank way to try to ensure that digital and cannot be control.
Singapore bank probe focus now turn to the other reference, because the market worried, they also to be manipulated.
Asian NDF market the biggest bank including ubs, Morgan chase (JPM. N: prices), DBS group holdings co., LTD. (DBSM. SI), and HSBC holdings (HSBA. L: prices).
The source not possible irregularities, individual bank or traders and Reuters such improper behavior no independent evidence put forward concrete opinions.
Ubs, jpmorgan chase, DBS bank and HSBC bank refused to comment on the report. Reuters also links the other 14 Banks NDF participate in price setting. Twelve, they have no opinion, without repeated phone calls and E-mail to respond the request could not be reached for comment.
Disciplinary action
Organizations in NDF rate formulation process, through the association of Banks in Singapore (ABS), the bank to submit their reading of the spot price for Malaysian ringgit and rupiah, Vietnam shield every day morning to be (10 p.m. ET).
NDF contract due sedimentation rate calculation, and then take the average opinion, not including the highest and the lowest quarter contribution from the bank.
Although ruled out rate is on the top and the bottom of the range, in order to ensure that a bank can't try to not partial slope, it is worth attention, in more than one bank traders collusion with each other, may affect the results.
Eighteen Banks on the front panel of the shield, 15 ringgit and 12 holes.
In this city country monetary authority of Singapore to the bank last July review way, they set up interbank interest rates, Banks London interbank scandal.
Sources said, because the bank staff introduced detailed documents and communication, they have evidence that set off alarm bells in NDF market activities, as well as extended comments, promote the market in September.
In Singapore, interbank lending and certain no principal delivery long-dated benchmark interest rate by the bank is a ABS panel. Townsend Reuters group, the parent company of the Reuters news, rupiah, ringgit and hole NDF market demand reference rate as a representative of ABS, and other interbank loans and currency exchange rate calculation and distribution. "Townsend Reuters support any measures to establish a more perfect market benchmark, we cooperate fully with regulators, the competent departments and reference sponsors investigation, townsend Reuters, a spokeswoman said."
In December, Singapore financial administration issued a statement, the bank is compulsory, comments, although it has no clear whether it will be their own on the basis of results to take action.
"The bank must immediately report any violations, they found that MAS, must take appropriate disciplinary action, involving illegal workers," the statement said.
"Comments is continuous, but also to the evaluation results, at this stage, it is not that mature."
When asked about Reuters probe research results, the central bank no further comment.
The people said, most Banks have submitted their comments, the authorities in the end of last year, but did not say what disciplinary action, if planned bank or dealer tried to control prices.
The hkma said that last year, it is working with ABS review current NDF price and the city state's benchmark lending rate. The association declined to comment on the incident.
Treated over-the-counter products in Singapore bank, if no principal delivery forward follow code by Singapore exchange market committee, known as "blue book" behavior.
This includes a regulation, pointed out: "dealers and brokers shall not be engaged in control or fraudulent behavior or any form of behavior, this will make other users of the markets with false or misleading impression, the market conditions."
Market thinned OUT
In the NDF market turnover is far less than that of London interbank interbank related derivatives, although they are heavy enough to affect the potential of emerging market currencies spot rate.
For the rupiah, fixed in Singapore's largest market, the daily turnover between $estimates, $7 million and $1.3 billion, according to HSBC bank report. Due to no principal delivery forward over-the-counter, no fixed volume data.
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