U.K. Police Arrest Man in Forex Market Manipulation Probe -- Update

By Jenny Strasburg 

British police arrested a man Friday morning at his suburban home east of London in connection with the government's probe into rigging of the foreign-exchange markets, according to a person familiar with the matter.

It was the first arrest known to be made in the continuing investigation. In a statement, the Serious Fraud Office confirmed an arrest of a man in the town of Billericay, in Essex. The agency said the arrest, made in conjunction with London police, was connected to an SFO investigation but didn't identify the person or provide other details. A London police spokeswoman declined to provide details.

The man arrested formerly worked at Royal Bank of Scotland Group PLC, another person familiar with the matter said.

In November, six U.S. and European banks agreed to pay about $4.3 billion to resolve allegations that they tried to manipulate the foreign-exchange market. The settlements, which came after long investigations, were with regulators in the U.S., U.K. and Switzerland.

An arrest in the U.K. is a preliminary step, and won't necessarily lead to a criminal charge. The arrest was earlier reported by the Guardian.

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