Lloyds to cast an eye over forex trading division

Lloyds Banking Group is launching an internal review of its foreign exchange trading operation. Picture: Getty

Lloyds Banking Group is launching an internal review of its foreign exchange trading operation. Picture: Getty

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LLOYDS Banking Group is launching an internal review of its foreign exchange trading operations as a number of its rivals are drawn into a worldwide probe into alleged rate rigging.

The bank is not itself subject to a formal investigation but has been asked by the Financial Conduct Authority (FCA) to review its operations and report irregularities.

Lloyds said it would be “prudent” to do so, given the probes into foreign exchange (forex) trading by regulators in the UK and overseas.

Sources stressed the bank was not a major player in the foreign exchange market.

It is understood that no traders at Lloyds have been put on leave, suspended or had contracts terminated in relation to the matter.

A spokesman said: “We are aware that authorities are investigating foreign exchange trading and, as a result, we believe it is prudent to review our own foreign exchange trading over recent years and have commenced such a review.

“We will, of course, report anything we find to the relevant authorities and assist them as requested.”

It comes after HSBC disclosed earlier this week that it was co-operating with the FCA in its foreign exchange trading investigation. Royal Bank of Scotland and Barclays have also been drawn into the probe, with traders reportedly suspended.

Meanwhile, the European Commission declined to comment on reports it was preparing to levy multi-billion pound fines on banks over alleged fixing of benchmark eurozone interest rates.

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