Thomson Reuters investigates foreign exchange client
Thomson Reuters Corp is investigating whether one of its currency trading customers gained an unfair advantage when making high speed foreign exchange trades on its platform.
Lucid Markets, a privately held electronic trading firm registered in Great Britain, may have benefited from trades using several connections on the Thomson Reuters Matching platform.
"As the operator of one of the largest FX dealing communities, providing a level and fair playing field for the community is paramount," said a Thomson Reuters spokeswoman.
The spokeswoman confirmed that an investigation was initiated when Thomson Reuters became aware of the issue, saying, "Thomson Reuters takes any accusations seriously and uses all the tools at its disposal to enforce its rules." She declined to provide further details as the investigation has not yet concluded.
Dierk Reuter, a founding partner at Lucid Markets in London who has no other known association with Thomson Reuters, said his firm is collaborating with Thomson Reuters on the probe. "We believe that we have been in compliance with Thomson Reuters instructions at all times," he said.
Clients are allowed two connections: one for trading and another as a backup.
A spokesperson for Lucid Markets in New York said the company is "still currently connected and trading through Thomson Reuters."
The investigation was first reported on Wednesday by Dow Jones, which competes with Thomson Reuters.
(Reporting By Jennifer Saba and Nick Olivari; Editing by Alden Bentley)