NY Attorney General probes 'spoofing' in FX markets

US authorities have reportedly subpoenaed various interdealer brokers, including Icap and Tullet Prebon as part of a probe into currency-market 'spoofing'.

BGC Partners and GFO are reportedly also among the firms which have been subpoenaed.

New York attorney general Eric Schneiderman was investigating the possibility that foreign-exchange trading might have been manipulated by brokers using fake orders, which is known as 'spoofing', Bloomberg reported quoting a person familiar with the matter.

In particular, Schneiderman was said to be focusing on when brokers might try to create an illusion of trades, so it appears there is supply and demand, when in reality there was little or no real activity going on.