Barclays Cooperating in FX Trading Probe

Barclays Bank announced on Wednesday that it is cooperating with regulators investigating potential manipulation of currency markets, coinciding with the release of its third-quarter earnings results.

In the earnings report, Barclays disclosed that it is reviewing its foreign exchange trading operations over a multi-year period ending in August 2013, following requests for information from regulatory authorities.

The bank confirmed that regulators are looking into possible attempts to manipulate certain benchmark currency exchange rates or engage in activities that might benefit specific trading positions. The investigations involve multiple market participants across various countries. Barclays has received inquiries from some of these authorities regarding their investigations and is cooperating with them.

Similarly, UBS and Deutsche Bank have also confirmed that they are working with regulators on probes related to potential currency exchange rate manipulation.

Barclays was previously penalized in June 2012 for manipulating the inter-bank lending rate, Libor, which resulted in the resignation of its then-CEO, Bob Diamond.

In its third-quarter earnings report, Barclays reported adjusted pre-tax profits of £1.39 billion, a decrease from £1.87 billion in the same period last year, yet still surpassing expectations of £1.25 billion. The bank attributed the decline in profits to a slowdown in revenue from fixed income, currency, and commodities.

Net profit for the third quarter was £511 million, a significant turnaround from a loss of £183 million in the same quarter last year. Following the earnings announcement, Barclays’ shares saw a 2.9% increase in London.