A Tribunal at South Africa’s Competition Commission will officially hear details of Citi’s agreed settlement with local authorities to end charges of collusion and market manipulation on May 22.
Although the bank has reached an agreement with the Commission and agreed to pay ZAR 69.5 million for its role in the alleged manipulation, local sources say the deal has to be rubber stamped by the Tribunal. Citi was the first bank of 17 charged to settle with the Commission on February 20.
Galen Stops examines the extent to which banks in different emerging markets face the same challenges when trying to build out their e-FX businesses, and questions the extent to which technology developments in these markets will follow a familiar pattern.
Talking broadly about how firms in emerging markets operate is often misleading, given the diversity of these markets and how widely the demands and conditions vary within each one. And yet, when it comes to banks in emerging markets that are looking to build out their e-FX businesses, there are some common themes that can be identified. For starters, these banks actually tend to have a sizable and often fairly diverse customer base, although each of these clients tend to trade FX on a smaller scale in terms of transaction size compared to their counterparts in more developed countries.