HSBC must hand over files on ECU’S $100m forex trades

HSBC has been ordered by the UK High Court to disclose documents relating to alleged manipulation of foreign exchange markets by its traders in London and New York over a decade ago.

Uk-based currency investor ECU Group won the court order as it sought to establish whether HSBC manipulated the market to profit ahead of executing three trades for the firm worth more than $100m (£75m) a piece in 2006.

HSBC now has to disclose all correspondence and records related to the alleged suspect trades, which could pave the way for a full lawsuit.

Europe’s biggest lender has already been embroiled in scandals related to forex rigging and was one of several banks fined $4.3bn three years ago by US regulators for systematic rigging of the market between 2008 and 2013.

ECU’S allegations relate to an earlier period and could embroil London traders for the first time.

The group claims that HSBC traders on both sides of the Atlantic engaged in “front-running” for the bank’s own profit ahead of executing three so-called “stop-loss” orders for it.

Michael Petley, chief executive of ECU, said: “HSBC has put every conceivable hurdle in our way in our quest for this disclosure.”

The bank declined to comment.