Commerzbank has suspended two FX traders after it is understood to have uncovered and stopped what sources close to the bank term an alleged attempt at manipulating a client transaction.
They add that in January the bank’s internal procedures identified the action while the second tranche of a client order was being transacted.
The order in question was not ultimately executed, Profit & Loss understands.
“Commerzbank Corporates and Markets confirms the suspension of two individuals in its foreign exchange division after discovering a breach of internal rules,” says a spokesperson for the bank.
After the transaction was discovered, the bank suspended the first individual linked to the order in February. Following an internal investigation, a second individual was identified and suspended this month.
The alleged wrongdoing does not appear to involve an attempt to manipulate the Fix, but rather relates to compliance failings relating to a single client order.
“Commerzbank has zero tolerance for non-compliance with rules and regulations, and has taken immediate action upon the discovery of inappropriate conduct,” the bank’s spokesperson adds. “We believe this incident was an isolated event and one from which the bank and the individuals concerned in no way profited.”