Former HSBC executive arrested in US forex case

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New York (AFP)

A former HSBC executive was arrested in London this week to face US charges he conspired to fix the foreign exchange market, US officials said in court papers.

Stuart Scott, a British citizen and a senior supervisor in global foreign exchange cash trading, was arrested in London on Monday in connection with a US extradition request, US officials said in a court filing in New York on Wednesday.

Scott was released on bail by a London court on Wednesday and plans to fight his extradition, Bloomberg News reported.

"Our client strongly denies the allegations," said Anne Davies, an attorney at Gunnercooke representing Scott. "Given there are ongoing proceedings it would be inappropriate to comment further at this time."

Scott was released on bail by a London court on Wednesday and plans to fight his extradition, Bloomberg News reported.

HSBC declined comment on the case beyond saying that Scott left the firm in 2014.

US officials in July 2016 arrested another HSBC executive, Mark Johnson, in New York, who also was released on bail.

US officials have accused the two men of using inside information on a $3.5 billion foreign currency transaction to benefit the bank and themselves at the client's expense, generating $8 million in profits for the banks and $3 million for the two traders.

HSBC was one of six major US and European banks that were fined a total $4.2 billion by global regulators in a November 2014 crackdown for attempted manipulation of the foreign exchange market.