RBC and TD seeking settlements over currency traders sharing confidential info

TORONTO — Canada’s two largest banks are seeking to settle allegations that their currency traders used confidential information in chatrooms to gain potential advantage in foreign exchange transactions between 2011 and 2013.The Ontario Securities Commission will conduct hearings Friday to determine whether it’s in the public interest to approve settlement agreements between the regulator’s staff and the Royal Bank of Canada along with the Toronto-Dominion Bank.In statements of allegations, the OSC says there are “many hundreds” of examples of inappropriate or improper behaviour at each bank.The statements allege confidential information, including trade sizes, timing, price, or stop-loss levels, was shared by the bank’s traders with others participants in chatrooms or received to gain a potential advantage in the market over traders at other firms who did not have access to this information.While exchanging “market colour” including economic analysis relating to the movement of currencies was acceptable, the OSC says traders inappropriately sought and disclosed specific transaction details to gain advantage in the market.The OSC says the two banks failed to have sufficient supervision and controls in its currency trading business. It says compliance monitoring issues continued into 2015 despite banning multi-dealer chatrooms in November 2013.The Canadian Press

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