UBS Probes Precious Metals as Hong Kong Reprimands Rate Trading
UBS’s internal review of foreign-exchange trading includes precious metals, Switzerland’s biggest bank said in its annual report released today. Separately, the HKMA said UBS traders tried to rig Hong Kong’s benchmark rate and asked the lender to take action against the employees involved.
Global scrutiny of benchmarks is shifting from interest rates to the currency and commodity markets. At least a dozen regulators are probing allegations that traders colluded to rig benchmarks in the $5.3 trillion-a-day currency market. The Bank of Canada is examining the way its own reference rate for the Canadian dollar is set, according to documents obtained by Bloomberg News.
“Precious metals is a niche market though it’s part of what UBS considers value-added for its wealth management clients,” said Andreas Venditti, an analyst at Vontobel Holding AG in Zurich with a buy recommendation on the stock.