Major UK Banks Face Supreme Court Battle Over Forex Rigging Allegations

As the legal landscape continues to shift, major British banks such as Barclays, NatWest, Citibank, and JPMorgan are now at the forefront of a high-stakes battle in the UK Supreme Court. The case centers around allegations of forex rigging, a scandal that has been unfolding over the past decade. These banks, along with several others like MUFG Bank and UBS, are accused of colluding to manipulate exchange rates on the global foreign exchange market for their financial gain.

Introduction to the Forex Rigging Scandal

The foreign exchange market, often abbreviated as forex, is the world's largest financial market, with billions of dollars traded daily. The scandal at hand involves allegations that a group of major banks engaged in a cartel to fix prices and manipulate exchange rates. This practice not only undermines market integrity but also harms businesses and individuals who rely on fair exchange rates for international transactions.

Historical Context

The forex rigging scandal began to unravel in the early 2010s when regulatory bodies discovered widespread collusion among banks. In 2014, the UK's financial regulator imposed fines totaling £1.1 billion on five major banks, including Citibank, HSBC, JPMorgan, The Royal Bank of Scotland, and UBS[1]. Additionally, the European Commission found that certain entities within major banking groups participated in FX spot trading cartels between 2007 and 2013[1].

Legal Developments: From Tribunals to the Supreme Court

Class Action Lawsuits

A significant legal challenge was launched in 2019 by Phillip Evans, a former senior policy adviser at Which?, on behalf of the law firm Hausfeld. The claim, filed with the Competition Appeal Tribunal (CAT), aimed to seek damages for businesses and individuals affected by the alleged forex manipulation[1]. The claimants argued that the banks' actions led to widened spreads in currency trading, resulting in financial losses for those involved in spot and forward transactions.

Key Legal Issues

1. Opt-in vs. Opt-out Claims: The CAT initially decided that claims could proceed only on an opt-in basis, requiring claimants to actively join the case. However, this decision was later overturned by the Court of Appeal in July 2023, which ruled that the CAT had incorrectly approached the distinction between opt-in and opt-out claims[1][2].

2. Causation and Certification: The banks argue that the claimants failed to adequately plead causation, a crucial element in proving harm resulting from the alleged forex rigging. The Court of Appeal's decision to allow the case to proceed on an opt-out basis has now been appealed to the Supreme Court[2].

Supreme Court Appeal

The Supreme Court appeal focuses on two main legal issues:

• Incorrect Overturning of CAT Decision: The banks contend that the Court of Appeal was wrong to reverse the CAT's opt-in decision.
• Reliance on Wrong Legal Principles: Banks also argue that the Court of Appeal improperly considered factors such as the likelihood of claims proceeding without opt-out certification[2].

Implications of the Supreme Court Decision

If the Supreme Court rules in favor of the banks, it could significantly impact the potential damages claims by limiting the ability of claimants to collectively seek compensation. Conversely, if the Court upholds the Court of Appeal's decision, it could pave the way for thousands of customers to pursue damages in what is estimated to be a £2.7 billion case[3].

Recent Hearings

In April 2025, the Supreme Court began hearing arguments from both sides, with justices including Lord Sales, Lord Leggatt, Lord Burrows, Lady Rose, and Lord Richards presiding over the case[2]. The hearings are pivotal, as they will determine the future of collective actions against these financial institutions.

Conclusion

The ongoing legal battle involving Barclays, NatWest, Citibank, and JPMorgan reflects the broader struggle to ensure fairness and transparency in the financial sector. As this case unfolds, it highlights the critical role of regulatory bodies and courts in addressing allegations of market manipulation. Whether or not the banks are ultimately found liable, the implications for financial regulation and consumer rights will be far-reaching.

---

Key Facts and Figures:

• Banks Involved: Barclays, NatWest, Citibank, JPMorgan, MUFG Bank, UBS, HSBC, and Credit Suisse.
• Estimated Damages: £2.7 billion.
• Legal Jurisdiction: UK Supreme Court.
• Allegations: Forex rigging and manipulation of exchange rates.
• Regulatory Fines: £1.1 billion in 2014.

Trending Keywords: Forex Rigging, UK Banks, Supreme Court, Financial Regulation, Market Manipulation, Class Action Lawsuit.