Currency "Cartel" traders on trial for chats that cost billions

Three British currency traders, who were part of an exclusive online trading group named by members the Cartel, will be sued this week for alleged market manipulation, which already costs $ 14 billion to global banks.

The trio is the banks that run a massive $ 5.1 trillion-a-day foreign exchange market. They are accused of manipulating a key market index to make profits at the expense of competitors and their own customers.

The main event in the case will be the testimony of a former member of the group, known as the Mafia. Phone calls and printouts from the group will most likely also be used. The defendants say the accused, each of whom is expecting 10 years in prison, have coordinated their deals to manipulate the spot market of the euro and the dollar from 2007 to 2013. All three called for innocence.

This case has already made its mark on the forex trading business - the world's largest market.

Four-bank malfeasance in 2015 brought companies $ 2.5 billion of fines plus an additional $ 203 million for UBS. Put right, more than a dozen financial institutions paid around $ 11.8 billion in fines, with over $ 2.3 billion paid out as compensation to clients and investors.

Chart: Used with permission from Bloomberg Finance L.P.

Source: Bloomberg

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