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Bankers, Officials Weigh Forex Fixes

"Bankers and policy makers are considering changing the way foreign-exchange benchmarks are calculated, or pushing clients to ditch benchmark-based trades, in response to global investigations into whether this vast market is rigged.

"The topic was raised at a four-hour meeting in late October at the European Central Bank. Regulators in the U.K., U.S., Switzerland, Hong Kong and elsewhere started looking into possible efforts to manipulate the $5.3 trillion-a-day currencies market earlier this year. Changes to the so-called fix are "top of the list in industry discussions," said one person who attended the meeting.

"The fixes are snapshots of traded currencies rates gathered at set times of day that are used by companies and investors as benchmark reference points. The most popular is at 4 p.m. in London. Around 1% to 2% of global currencies flows are executed at this fix, which is computed by examining trades in a one-minute window."

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