London FX traders said to have colluded in private chatroom

 
Oliver Smith
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MILLIONS of electronic messages sent by a small group of top currency traders are being examined by UK investigators as part of a probe into collusion in the largely unregulated foreign exchange market.

The traders reportedly pooled order details from hedge funds and discussed the prices they should be offered in private chatrooms.

In a chatroom transcript from April 2012, two traders discussed the spread that should be given to a certain hedge fund, according to Reuters. The fund wanted a spread of five basis points on its foreign exchange order, but the first trader offered a spread of six.

“I’d show 6 to good guys but guys like that I’m going to show seven in future,” the trader said.

The another trader then decided to quote a spread of seven basis points, a person familiar with the transcript told Reuters.