A U.K.-based currency investment firm filed an application to a court in London demanding that HSBC Holdings Plc share its records relating to three foreign-exchange orders totaling more than $100 million carried out in 2006, the London Financial Times reported June 7, citing the court filing.
ECU Group had previously told HSBC that it suspected traders were ripping it off but the bank persuaded it to drop the issue. The group reopened its complaint after the U.S. Department of Justice arrested two HSBC forex traders in 2016 on charges of front-running, or making personal deals ahead of their clients, the FT noted.
ECU is asking for a pre-action disclosure, a move prior to filing a full lawsuit, of interbank dealing tickets, deal log entries and relevant Bloomberg instant messages for the three trades executed from London and New York. It is also demanding access to documents relating to HSBC's internal probe into ECU's original complaint, the FT added.
If the court finds proof of concealment, it can waive the statute of limitations, which would normally prevent litigation more than six years after an event, according to the report.