Article: Citadel Securities Pays $97m to Settle with China Regulators

Article - Media

Citadel Securities Pays $97m to Settle with China Regulators

Aziz Abdel-Qader

FinanceMagnates, 20 January 2020

Citadel Securities, one of the largest market makers in US stocks and options, has agreed to pay 670 million yuan ($97 million) to resolve a probe by China’s regulator into alleged trading rules violations. The Chinese securities regulator launched the five-year investigation in 2015 following a stock plunge that erased nearly $3.9 billion in the mainland metal market.

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Comment: In the USA they are angels. How much did they steal?

Article: Morgan Stanley Places Four Traders on Leave in Wake of FX Probe

Article - Media

Morgan Stanley Places Four Traders on Leave in Wake of FX Probe

Aziz Abdel-Qader

Finance Magnates, 29 November 2019

Morgan Stanley has reportedly dismissed, or placed on leave, four currency traders after being caught out trying to conceal significant trading losses. The move comes amid investigations by the US bank into alleged charges that they exaggerated the performance of the FX options desk.

A Bloomberg report identified two London based traders – Scott Eisner and Rodrigo Jolig – and two senior New York-based colleagues, Thiago Melzer and Mitchell Nadel, who were running emerging-markets desk and macro trading in the Americas.

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Article: London Court Hears £1B Forex-Rigging Case Against Five Banks

Article - Media, Publications

London Court Hears £1B Forex-Rigging Case Against Five Banks

Aziz Abdel-Qader, 05 November 2019

The case accusing Barclays, Citigroup, JPMorgan, Royal Bank of Scotland, and UBS of foreign exchange rigging is scheduled to be heard at London’s tribunal on Wednesday.

The five global banks are facing a £1 billion ($1.3 billion) class-action lawsuit that seeks to compensate pension funds, asset managers, hedge funds, and corporations that lost out because these banks participated in a market manipulation scheme between 2007 and 2013. However, the total value of potential fines will depend on the number of forex trades executed in London, and the proportional impact of rate-rigging on GBP trades. Continue reading “Article: London Court Hears £1B Forex-Rigging Case Against Five Banks”

Article: Court Dismisses Some FX Rigging Claims Against Credit Suisse

Article - Media, Publications

Court Dismisses Some FX Rigging Claims Against Credit Suisse

Aziz Abdel-Qader, 04 September 2019

A New York judge overseeing litigation accusing 16 banks of rigging prices in the foreign exchange market on Wednesday narrowed, but refused to dismiss antitrust lawsuits against Credit Suisse Group AG.

A group of investors has sued the global banks back in May for allegedly rigging prices for their own benefit by sharing confidential orders and trading positions. Continue reading “Article: Court Dismisses Some FX Rigging Claims Against Credit Suisse”

Article: Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges

Article - Media, Publications

Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges

Aziz Abdel-Qader, 26 June 2019

Merrill Lynch Commodities, Inc. (MLCI) has just settled spoofing charges with the Commodity Futures Trading Commission (CFTC) by agreeing to pay a combined $36.5 million. The CFTC action centered on spoofing activity carried out by Bank of America’s global commodities trading business in a scheme that ran from 2008 through 2014 and involved dozens of fraudulent orders that were canceled before execution.

MLCI precious metals traders are accused of working with other traders to rig the purchase and sale of futures contracts on the Chicago Mercantile Exchange and the Chicago Board of Trade. Continue reading “Article: Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges”

Article: Goldman Sachs Fined $110 Million to Settle New York FX Probe

Article - Media, Publications

Goldman Sachs Fined $110 Million to Settle New York FX Probe

Aziz Abdel-Qader, 01 May 2018

Goldman Sachs has been slapped with a $110 million fine by New York regulator and Federal Reserve in an antitrust lawsuit alleging that the bank’s traders routinely manipulated the forex market for their profit.

New York’s Department of Financial Services also ordered the investment bank to put in place a program to ensure that the alleged violation doesn’t happen again. However, Goldman is not required to hire an outside consultant to review its practices, a condition sometimes imposed on banks fined for compliance violations.

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The DFS said Goldman Sachs had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors, using electronic chatrooms. The traders frequently tried to trade ahead of big foreign-exchange transactions by their clients, a practice known as front-running.

The order released Tuesday detailed multiple instances of improper behavior, which occurred from at least 2008 to 2015.

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