Bank faces fresh accusations of manipulating deals for profit
HSBC faces more forex rigging allegations after an investment firm took legal action against trades from over a decade ago.
ECU Group has lodged an application at the Commercial Court to ask HSBC to disclose documents relating to three foreign exchange deals that took place in 2006, according to the FT.
ECU suspects HSBC was manipulating the deals for its own profit.
A former ECU complaint against HSBC led to an internal investigation, but the bank found no wrongdoing.
Now ECU has resurrected the issue after US courts charged two HSBC traders with ‘front running’ last year.
ECU has lodged papers for a pre-action disclosure – a request for information that can precede a full court case.
The firm wants to see HSBC’s interbank dealing tickets, relevant Bloomberg messages for the disputed trades and deal log entries.
It also wants to see papers connected to the 2006 HSBC internal inquiry over the deals.
HSBC and several other global banks were fined $2bn (£1.55bn) three years ago for forex manipulation.