New York Attorney General Eric Schneiderman's office is investigating the posting of false bids and offers in the foreign exchange options market for emerging market currencies, a person familiar with the matter said on Monday.
The person, who spoke on condition of anonymity, said subpoenas were issued last week to four brokerages: BGC Partners (BGCP.O), GFI Group, TFS-ICAP (IAP.L) and Tullett Prebon Financial Services (TLPR.L).
U.S. authorities have increased their scrutiny of so-called 'ghosting' or 'spoofing,' in which a trader tries to create a false appearance of market interest in a stock, commodity or other asset by placing orders and then immediately canceling them. Authorities say such orders can be manipulative.