Bank traders are accepting invitations so that they can trade in instant messaging platforms. This really is a strong sign that their involvement in a rogue conspiracy is going to try and manipulate the rand and USD currency pair. The argument comes from the Competition Commission. The commission has seriously delayed the case against the bank currency traders and they have also showed that things are heating up to say the least. The watchdog has come out to say that traders have a clear intention to try and rig currency trades so that profits can be boosted as much as possible.
Tembeka Ngcukaitobi has said that the acceptance has come from banks in the form of instant messaging. He has also come out to describe the smoke-filled darkrooms as being conspiracy and that this could mean bad news for those who are actively participating in trading. Hearings were done into the commission’s case regarding currency-rigging and the tribunal happened in February 2017. The case has implicated more than 30 individuals and they have also been linked to 23 different banks. The commission has found that since September 2007, traders from competing banks have entered into a general agreement to try and collude on prices and even bids as well. The bid offer spreads are in relation to currency trading alone and by doing this they used platforms such as Bloomberg. They have also used telephone conversations and meetings to collude with their other activities as well.
It is very clear that the overarching agreement is what it is all about. The chatroom is able to provide a forum but the truth is that this is a smoke-filled darkroom. Only when you are in the room you can then see what it is all about. When you have stayed, and when you are able to understand what you are staying for you can then understand the information that is being communicated. When you are inside you can then participate in various different chatrooms. When you participate in the room, bank traders then shared sensitive information that is not supposed to be public domain. This includes currency orders for customers and even their personal bank information as well. They then shared things like volumes and trades that have been successful in the past. They had a group of traders who were all involved with currency manipulation and every one of them took part. The membership that they have means that they have access to sensitive information and this meant that the whole thing turned out to be very bad to say the least. Of course, it’s important to know that the merits of the case have not ben heard yet and the tribunal is still hearing about technical issues that include exceptions and even objections to some of the bank charges. These objections include whether or not the commission had the right jurisdictions over the entities and whether or not there was any clear evidence.
Once the exceptions have all be argued. The tribunal panel has been lead by the one and only Norman Manoim. He will decide whether the case should be thrown out or whether the case should be brought via a tribunal.
Banks have been scathing about the commission’s case and they have stated that they are relying on broad accusations that don’t actually hold any hard evidence. Wim Trengove who works for Investec Bank have come out to say that they have no understanding about these charges and that they have no idea about the alleged agreement either. The Bank of America, HSBC bank and more have also come out to support the same views, and that they have no idea why the commission is referring to an overarching agreement or whether the agreements happen to contravene the competition act in general.