Price fixing lawsuits come to platinum, palladium market
Interest rates, gold, silver and now PGMs…
The banks and German industrial firm set up the benchmarking system in 1989, but the London Metal Exchange will take over December 1 using a new electronic platform.
In a complaint filed on Tuesday in the U.S. District Court in Manhattan, units of Goldman, BASF, HSBC Holdings Plc and South Africa's Standard Bank Group Ltd were accused of having conspired since 2007 to rig the twice-daily platinum and palladium "fixings" and the prices of futures and options based on those fixings.
The plaintiff, Modern Settings LLC, a Florida-based company that said it bought the metals, claimed purchasers lost millions of dollars because the defendants illegally shared customer data, used that information to engage in "front-running" of expected price moves, and manufactured phantom "spoof" orders.
Continue reading at Reuters.