The problems of FX manipulation are truly a peccadillo compared to the routine client front running that was (probably still is) a staple of the industry.
Clients are rapidly shifting to electronic platforms to execute smaller (less than $500m) orders and it's destroying margins and profitability in the industry. The days will soon be over when a bank could take 2-3 cents from any corporate client for executing an FX trade; it's a miracle they lasted as long as they did.
In any case, governments are out to fine everyone on Wall Street or in the City and the handful of pip manipulations at the fixes are an easy target. Bloomberg has the story.
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