The South African Reserve Bank (SARB) has noted today’s announcement by the Competition Commission of the investigation it has initiated following a complaint against certain foreign exchange traders, who are alleged to have been directly or indirectly involved in fixing prices in relation to bids, offers and bid/offer spreads in respect of certain foreign exchange transactions involving the South African rand.
It is our understanding that such alleged instances of market misconduct took place in foreign jurisdictions and do not relate to actions that took place in South Africa.
In so far as there are links to South African entities, the Registrar of Banks has been assured by such entities that they will fully cooperate with the investigation of the Competition Commission.
On 27 October 2014, in an unrelated development, the SARB and the Financial Services Board (FSB) announced a review of the foreign exchange trading operations of authorised dealers in South Africa. This review was not informed by any indications of widespread misconduct or malpractice in the South African foreign exchange market, but is intended to confirm and where appropriate strengthen the level adherence to best practices in foreign exchange dealing and minimise the risk of manipulation of benchmarks and sharing confidential client information, so as to enhance the transparency, efficiency and integrity of the South African foreign exchange market.
The review, conducted by a task team led by former Senior Deputy Governor, Mr James Cross, is expected to issue a report by the end of June 2015.
Hlengani Mathebula
Head: Group Strategy and Communications
Tel: +27 12 313 4210
Cell: +27 82 448 9219
