FX Settlements Up and Up-dated

It has been a little over a year since we last visited the state of currency markets litigation.

For the main benchmark rigging allegation issue, overall settlements have now surpassed $12.2 billion, primarily in fees imposed by global supervisory authorities.  North American private actions account for over $2 billion, but many of the defendants are yet to settle.  Since our last update, we have seen three, albeit relatively small, settlements by defendants in the Canadian class action.

Outside of the main case, there have been settlements by custodians State Street ($530 mm) and Bank of New York ($714 mm) in cases alleging they failed to provide, as promised, "best execution" on FX conversions on standing orders.  Separately, Barclays has settled with regulators and a private litigant over issues concerning its backing away from live quotes, implementing a potentially one-sided "last-look" approach.

Here is the current status of the settlements in re potential benchmark rigging.  It is noteworthy that counselors representing the class actions have pursued, and often exacted large settlements from, parties that have escaped regulatory fines.