Time Stamps for UK FOREX Trades

The treasury department of the United Kingdom has advised the Bank of England to use time stamps for FOREX transactions. This is one reform that advocates claim will ensure that banks cannot take advantage of clients.

However, the BOE is indifferent to the suggestion which raised concerns as to how thorough the central bank will be in its desire to mend London’s tainted reputation as a result of several FOREX scandals.

According to its proponents, time stamps can generate an auditing system trail and allow bank clients to perceive currency rates during the transaction period.

Time stamps are used extensively in wholesale foreign exchange markets but not for retail spot trades and institutional market investors.

The UK Treasury says the Bank of England must mull over how time stamps function in its Fair and Effective Markets Review. Observers say it can boost financial transparency especially with the recent manipulation of Libor as well as international currency benchmarks.

The treasury office spearheads the Bank’s Fair and Effective Markets Review, which wants to increase financial transparency after a string of City scandals such as some banks’ rigging of the Libor and foreign exchange benchmarks.

The Bank of England was not spared from these indignities as it has been probed on the possibility that certain officials were aware of alleged manipulation of FOREX transactions and pricing. Bank officials did not comment on this allegation but it vowed to be more responsible under the stewardship of BOE Governor Mark Carney.