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(Reuters) – The Securities and Exchange Commission (SEC) is inquiring whether digit major banks prefabricated proper representations to pension-fund clients most how their nowness trades would be handled and priced, the Wall Street Journal reported, citing a person old with the matter.

The Journal said the enquiry is examining the nowness trading activities of the digit of the world's largest custody banks, State Street Corp (STT.N) and Bank of New royalty moneyman (BK.N), and whether the banks disingenuous how they intended to circularize out the external mercantilism trades.

Foreign mercantilism traditionally has been a flush maker of revenue for U.S. banks, specially protective banks, which not exclusive profit from buying planetary stocks and bonds for pension funds and another investors, but also on trading dollars into another currencies. Foreign mercantilism overall is a Brobdingnagian business, with cipher regular intensity of $4 trillion.

Earlier in May, State Street revealed in a quarterly filing it was low enquiry by the SEC and also disclosed that digit clients began litigation against it seeking some damages, on behalf of all protective clients that executed external mercantilism transactions through State Street.

However, the regulatory authority's enquiry of BNY moneyman wasn't previously known.

Both the banks were not directly acquirable for comment.

(Reporting by Siddharth Cavale in Bangalore; Editing by Kim Coghill)

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