U.K. joins global crackdown into Forex trading

LONDON (CNNMoney) A global crackdown into forex trading is gathering pace as U.K. regulators investigate possible misconduct in the $5.3 trillion foreign currency market.

The Financial Conduct Authority said in a statement issued Wednesday that alongside several other domestic and international agencies, it is examining a number of firms over foreign exchange trading.

“Our investigations are at an early stage and it will be some time before we conclude whether there has been any misconduct which will lead to enforcement action,” the statement said.

London is the world’s largest foreign exchange trading hub. It’s the first time the FCA has confirmed it is conducting a probe, after saying in June it was speaking with relevant parties over possible rigging of benchmark currency rates.

In a further widening of the inquiry, authorities in Hong Kong said they were in contact with banks.

“The Hong Kong Monetary Authority is aware of the allegations. We have been in communications with the relevant overseas regulators and following up with individual banks,” the agency said in response to a written question.

Earlier this month, European authorities said they were on the hunt for evidence that banks may have tried to manipulate exchange rates.