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| HSBC and Goldman sued for allegedly fixing metal price | HSBC and Goldman sued for allegedly fixing metal price |
| (about 3 hours later) | |
| Goldman Sachs and HSBC are among four platinum and palladium dealers to be sued in New York for allegedly fixing the price of the metals. | Goldman Sachs and HSBC are among four platinum and palladium dealers to be sued in New York for allegedly fixing the price of the metals. |
| The four companies are said to have rigged prices for eight years. BASF and Standard bank were also sued in the first lawsuit of its kind in the US. | The four companies are said to have rigged prices for eight years. BASF and Standard bank were also sued in the first lawsuit of its kind in the US. |
| The four defendants declined to comment. | The four defendants declined to comment. |
| Modern Settings, a Florida-based maker of jewellery and police badges, said purchasers lost millions of dollars. | Modern Settings, a Florida-based maker of jewellery and police badges, said purchasers lost millions of dollars. |
| The Florida company filed the complaint in Manhattan federal court. | The Florida company filed the complaint in Manhattan federal court. |
| Platinum and palladium are used in jewellery, cars and dentistry. | Platinum and palladium are used in jewellery, cars and dentistry. |
| The companies were accused of having conspired since 2007 to rig the twice-daily platinum and palladium fixings. | The companies were accused of having conspired since 2007 to rig the twice-daily platinum and palladium fixings. |
| Front running | Front running |
| It is alleged that the companies illegally shared customer data and then used that information to engage in front running. | It is alleged that the companies illegally shared customer data and then used that information to engage in front running. |
| Front running is a form of market manipulation in which traders profit by using information about their clients' trading intentions. | Front running is a form of market manipulation in which traders profit by using information about their clients' trading intentions. |
| Traders will often know how a particular client order will effect the market and can place their own trades ahead of that order to benefit. | Traders will often know how a particular client order will effect the market and can place their own trades ahead of that order to benefit. |
| The four companies in this case are also accused of manufacturing "spoof" orders. | The four companies in this case are also accused of manufacturing "spoof" orders. |
| New system | New system |
| Last month , the London Metal Exchange said it will take charge of platinum and palladium price fixing, and use a new electronic platform from the 1st December. | Last month , the London Metal Exchange said it will take charge of platinum and palladium price fixing, and use a new electronic platform from the 1st December. |
| The lawsuit said those changes "have come too late". | |
| Goldman spokesman Michael DuVally and HSBC spokeswoman Juanita Gutierrez declined to comment. Standard Bank declined to comment. | Goldman spokesman Michael DuVally and HSBC spokeswoman Juanita Gutierrez declined to comment. Standard Bank declined to comment. |
| A spokeswoman for BASF, the world's largest chemicals maker, said the group could not comment because it had not been notified of a complaint. | A spokeswoman for BASF, the world's largest chemicals maker, said the group could not comment because it had not been notified of a complaint. |
| International regulators have tightened scrutiny of pricing benchmarks in recent years. | International regulators have tightened scrutiny of pricing benchmarks in recent years. |
| The tighter regulation comes after a currency trading scandal and the Libor scandal, which fixed a benchmark interest rate. | The tighter regulation comes after a currency trading scandal and the Libor scandal, which fixed a benchmark interest rate. |