When FX Goes Bad – Scandals, Shocks, and the Price of Trust

In this episode of the ACI UK podcast series, the focus shifts to the darker side of FX market history - exploring the scandals, shocks, and regulatory responses that have reshaped the industry over the past two decades. Hosts Kim Myers and Noel Singh are joined by Katharine Leaman (Leaman Crellin, former FCA) and Colin Lambert (The Full FX) for a candid discussion on misconduct, market failures, and the evolution of oversight.The conversation begins with the infamous Forex Cartel scandal, unpacking how informal information-sharing between traders escalated into one of the industry’s most high-profile cases - and why its legal handling remains controversial. From there, the discussion broadens to rogue trading incidents, highlighting how weak internal controls and ignored warning signs allowed losses to spiral out of control.The episode also examines major market shocks, including the Swiss National Bank’s sudden removal of the EUR/CHF peg, and how both human behaviour and algorithmic trading amplified the fallout. These events serve as a backdrop for a deeper look at how regulation has evolved—from individual accountability regimes like SMCR to the introduction of the FX Global Code as a principles-based framework for restoring trust.Looking forward, the guests explore emerging risks in an increasingly automated and AI-driven market, as well as the ongoing tension between regulation, innovation, and market efficiency. With a blend of real-world examples, sharp analysis, and industry perspective, this episode offers a grounded view of how the FX market has learned—sometimes painfully - to police itself.Thanks to LSEG FX & Trade Treasury Payments for supporting this episode.