The world's top financial regulator is set to issue a consultation paper to banks making detailed proposals for changes to the way foreign exchange "fixings" are conducted, banking sources said on Tuesday. The sources said banks expect the Financial Stability Board (FSB) to back the existing system of fixings but go into more detail than previously thought on potential changes to reduce the risk of market manipulation. The FSB is due to report to the Group of 20 major economies later this year on reform of a range of financial market benchmarks and the first fruits of that have been expected for some time. Senior players in the foreign exchange markets had thought it was likely to take a cautious approach on the currency fixings, preferring to wait for the conclusion of around a dozen regulatory investigations worldwide. But two sources with knowledge of discussions with the FSB told Reuters that UK-based bankers and officials, concerned at the effect the row has had on markets
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