A shark attacked a surfer in Byron Bay
FX Fixing: Barclays, RBS, HSBC and Others Face Collective £2bn in Fines

The Financial Conduct Authority is allegedly talking to some of the world's biggest banks over settling the investigation into the lenders trying to manipulate key foreign exchange rates.

In an apparent leak to Sky News, which cites a person close to the FCA talks, the regulator is speaking to British banking titans Barclays, HSBC and Royal Bank of Scotland (RBS) and other banks Citi, JP Morgan and UBS into outlining the preliminary terms of a deal to settle FX fixing allegations.

Sky's sources added that the settlements would be in the region of collectively £2bn (€2.6bn, $3.3bn) and the first tranche deals could be revealed in November 2014.

However, much like the settlements over Libor fixing charges, each bank is likely to pay different amounts.

The FCA have declined to comment.

The FX Market

The daily $5tn currency market is the largest in the financial system and is pegged to the value of funds, derivatives and products.

Morningstar estimates that $3.6tn in funds, including pension and savings accounts, track global indexes.

FX rates are calculated and compiled by using data from a variety of submitted provisions on a number of platforms, such as ThomsonReuters.

It is then calculated by WM, a unit of State Street, to form WM/ThomsonReuters at 1600 GMT daily.