British lawmakers have urged the nation’s financial watchdog to investigate allegations of price-rigging in the London gold market, Financial Times reported.
Members of the parliamentary Treasury select committee pressed the Financial Conduct Authority to act after hearing evidence Wednesday from gold market analysts who believe there is scope to rig the daily price-setting process and that it has probably been exploited frequently, the report said.
“If this evidence is even half true, the regulators need to find a way of acting much more quickly,” committee chairman Andrew Tyrie was quoted as saying. “Were they to conclude that their powers are inadequate, they should tell parliament.”
The London gold fix is a twice-daily auction process, controlled by four banks — Barclays, HSBC, Scotiabank and Société Générale.
David Bailey, head of markets infrastructure and policy at the FCA, said it is “possible” that the banks on the panel could have colluded to manipulate prices. “But I have no clear evidence that this has actually happened.”
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