6 former managers and traders of UBS Forex staff have been banned for 5 long years, for allegedly manipulating foreign exchange as well as precious metals.
What exactly happened?
FINMA which happens to be a Swiss financial watchdog banned 6 former traders of Forex because they heavily breached the regulation of the company by manipulating with foreign exchange as well as precious metals. The name of the traders has not been revealed, but the charges against them are quite strong. FINMA has been on a mission to find out individuals as well as companies who breach the laws of Forex and are on the lookout for those with misconduct.
In this quest around 7 banks have been fined with somewhere around 10 billion dollars. According to FINMA traders share really confidential news and reveal the identities of the third party which is against the Forex rules. After repeated attempts of breaking the benchmarks of the regulations made by Forex these people were found guilty.
FINMA has been investigating the case since 2014 and has kept a close eye on 11 UBS staff, 6 out of which were found guilty of breaching the regulation of the company. 4 traders have been banned of foreign exchange as well as precious metals for at least one year. In the past, there have been many such breaches in Forex and those have been addressed with strict action. However, even after so many cases, there are a number of traders who are still engaged in such malpractices and that needs to be addressed. With the growing economy, things are going to become more complicated ad give rise to such problems for which action is required. Countries such as India and China are emerging as a really strong powers, and it is the duty of those involved in foreign exchange to be strict and stern to match up to the standards of Forex. To find out How the Indian Economy is Growing and what are its implication on the world market, click right here.
With FINMA is becoming such a stern and firm body when it comes to the adherence of the Forex laws, countries must take example from it and avoid all kinds malpractices. The fact that such strict a prompt action has been taken, those involved in corruption with foreign exchange will be warned. Being barred from participating in trade for one whole year can give a major blow to trading companies, and such a punishment is apt for such crimes. Trading companies must now adhere to all the standards of Forex to avoid any kinds of legal battles, because once the problem is highlighted, it will become very difficult for the company to get out of the legal battle without losing out. Rigging of currencies is a serious crime and no country would want that to happen, therefore, more laws are required to keep traders in check and to avoid any such problems. FINMA must be appreciated for its hard work and scrutiny which became fruitful in catching hold of all those involved in rigging of the currency. The probe is still going on, with the other suspects and the results will come out soon.