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US to probe forex deals
15/05/2002 17:32 - (SA)
New York - The US Justice Department is investigating a group of the world's largest banks for allegedly using their online trading service to restrict competition in the foreign currency market, the Wall Street Journal reported on Wednesday.
Antitrust enforcers are looking at whether the electronic
exchange FXAll, owned by 17 international financial institutions,
sought to illegally crowd out a rival online service, according to lawyers close to the case and a letter the Justice Department has sent to Congress, the report said.
The Wall Street Journal quoted an FXAll spokesperson who said the
venture is entirely in compliance with the law, and is maintaining "an open dialogue" with regulators.
The backers of FXAll include Citigroup, JP Morgan Chase, Goldman
Sachs Group and Credit Suisse Group's CSFB. For the past year,
FXAll has been offering foreign currency exchange services over the Internet and private networks in response to competition from an online upstart, Currenex, and another service owned by State Street Boston, the Wall Street Journal said. - Sapa-AFP
- SAPA
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