FCA launches gold benchmark rigging review
Financial Conduct Authority launches preliminary review into possible rigging of gold benchmarks
It is not yet known which gold
benchmarks are under scrutiny, but among the most important is the
London gold fixing, which determines the spot price for physical gold
and is set twice daily by a panel of five banks. Photo: Alamy
7:55PM GMT 19 Nov 2013
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Britain's financial regulator is looking into whether gold benchmarks could
have been rigged.
The Financial Conduct Authority has launched a preliminary review into the
issue, a person familiar with the matter has told Bloomberg.
It is not yet known which gold benchmarks are under scrutiny, but among the most important is the London gold fixing, which determines the spot price for physical gold and is set twice daily by a panel of five banks.
The review adds to the list of financial benchmarks being investigated for suspected rigging by regulators around the world in the wake of the Libor-fixing scandal, which implicated a number of banks in fixing a key interbank lending rate.
It is not yet known which gold benchmarks are under scrutiny, but among the most important is the London gold fixing, which determines the spot price for physical gold and is set twice daily by a panel of five banks.
The review adds to the list of financial benchmarks being investigated for suspected rigging by regulators around the world in the wake of the Libor-fixing scandal, which implicated a number of banks in fixing a key interbank lending rate.
Last month the FCA
confirmed it was at the "early stage" of an inquiry into potential rigging
of the $5.3 trillion (£3.3 trillion) daily global trade in currencies,
which is also under review the US Department of Justice and European
authorities.
A spokesman for the FCA declined to comment.
