Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, July 17, 2017

BNP Paribas agrees to $246 million settlement of FX-related charges

By Richard A. Roth, J.D.

BNP Paribas S.A. and two U.S. subsidiaries have agreed to pay more than $246 million to settle Federal Reserve Board charges that lax supervision allowed foreign exchange traders improperly to communicate with competitors about BNP’s trading activities. The order also requires the organization to improve its oversight and controls over FX trading. The Fed added that it has prohibited BNP from re-employing the individuals who were involved in the illegal communications. BNP did not admit any wrongdoing as part of the settlement.

The consent order says that BNP employees who were trading in the spot market routinely exchanged electronic messages with traders at other financial institutions. The messages included discussions about:

  • trading positions and coordinated trading strategies;
  • anticipated benchmark fix-related trading;
  • confidential information about BNP customers;
  • bid/offer spreads offered to BNP customers; and
  • trades that would trigger or defend barrier options inside BNP in order to benefit the bank.

The communications involved both U.S. dollars and foreign currencies and covered trades on behalf of both BNP customers and the bank. The consent order noted that BNP identified the illegal conduct, reported it to the Fed, and has cooperated with the Fed’s investigation. The bank already has begun to improve its practices on a group-wide basis.

Europe-based BNP Paribas is an international financial organization that does business in 75 countries.

Companies: BNP Paribas S.A.; BNP Paribas Securities Corp.; BNP Paribas USA, Inc.

MainStory: TopStory BankingOperations EnforcementActions FederalReserveSystem FinancialIntermediaries

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.