HSBC senior manager arrested in FX rigging investigation at JFK airport in New York - reports

Mark Johnson, global head of foreign exchange cash trading in London, was reportedly arrested on Tuesday

In 2015 Barclays, JPMorgan, Citibank, RBS and UBS were fined by US authorities for misconduct in foreign exchange trading (AFP/Getty )

A senior executive at HSBC has been arrested at New York's JFK airport for his alleged involvement in a conspiracy to rig currency benchmarks, according to reports.

Mark Johnson, global head of foreign exchange cash trading in London, was reportedly arrested on Tuesday.

He will appear before a federal court in Brooklyn on Wednesday charged with conspiracy to commit wire fraud, Bloomberg said.

Mr Johnson is reported to be the first person charged in the Justice Department's three-year investigation into foreign exchange rigging at global banks.

Further reports suggested that he had been charged with front-running a customer order, or dealing on advance information provided by brokers before the client has given that information. The practice could have netted him and others involved millions of dollars in profit.

A spokeswoman for HSBC declined to comment. A spokesperson for the Justice Department did not immediately respond to requests for comment.

The Justice Department opened an investigation into possible manipulation of the £3 trillion-a-day foreign exchange market in 2013, following the start of a similar probe by the UK's Financial Conduct Authority.

In April it was reported that the Justice Department had offered so-called reverse proffers to around five individuals said to be involved in the scandal.

This means they were told about the case being put together against them and ask how they would plead, in order to pressure people to plead guilty rather than fight.

The Serious Fraud Office in the UK closed its criminal investigation into alleged price fixing in the foreign exchange market in March with no charges. The investigation started when the SFO handed the FCA documents.

HSBC were among six banks collectively fined £2.6bn in 2014 by UK and US regulators over traders' attempts to manipulate rates.

In 2015 Barclays, JPMorgan, Citibank, RBS and UBS were fined by US authorities for misconduct in foreign exchange trading.

Additional reporting by Reuters