Abstract
In June 2013, Bloomberg reported that traders at some of the world’s biggest banks worked to manipulate key currency rates, racking up profits and costing investors – including your retirement fund – hundreds of millions of dollars globally.
They are accused of placing their own transactions ahead of trades requested by clients – known as front-running – which was the reason prices kept changing as people tried to make their own trades, like in the shopping analogy above. They bought euros or dollars, driving up the rate, and then profited by selling to other investors at a higher level.