Day: 11 May 2018

Former JPM FX Trader Indicted in US

The US Department of Justice has announced it has brought an inductment against former JP Morgan EM FX trader Akshay Aiyer for his role in alleged FX market manipulation. Aiyer is specifically charged with conspiring to fix prices and rig bids and offers in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies.
According to the indictment, from at least as early as October 2010 through at least July 2013, Aiyer, along with other New York-based CEEMEA traders working for rival banks, participated in a conspiracy designed to suppress competition in order to increase each trader’s profits and decrease each trader’s losses.

Tracing the Evolution of a Currency Manager

Philippe Bonnefoy, the founder of Eleuthera Capital, explains how his firm has evolved over the years in response to changes in the FX market.

“Over the last 20 or 30 years we’ve evolved massively, starting as discretionary macro traders, then using more and more quant models to manage positions and then finally using the quant models to actually do the trading and become a quant portfolio manager,” he says.

Part of the reason for this, explains Bonnefoy, is that the price behaviour of the FX market has changed significantly as market making has become overwhelming conducted electronically. Even now, he points out, FX trading firms need to be cognisant of these changes and how they’ve impacted liquidity when they screen and look at data to test their models.