Day: June 4, 2018

Societe Generale Hit with $750m LIBOR, Euribor Fines

The Commodity Futures Trading Commission (CFTC) has fined Societe Generale (SocGen) $475 million, and the US Department of Justice (DOJ) another $275 million, for attempted manipulation of and false reporting in connection with the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (Euribor).

More specifically, the CFTC accused the French bank of attempted manipulation of and false reporting in connection with the LIBOR for US Dollar, Yen and Euro, and the Euribor, certain instances of manipulation of Yen LIBOR, and aiding and abetting traders at another bank in their attempts to manipulate Euribor.

This misconduct apparently spanned more than six years, from 2006 through mid-2012.

Platforms Deliver May Uptick

The three largest FX platforms to report average daily volume (ADV) have reinforced the message from the first group to report that May was a good month for the industry. All three of CME Group, NEX Markets and Thomson Reuters have reported sizeable increases in activity both month-on-month and year-on-year, with NEX rising 25% from April, CME up 34.1% and Thomson Reuters up 12.6%. All three platforms report ADV in excess of $100 billion for the third time this year, a feat last achieved in June 2015.

Monahan Joins Greenwich

Greenwich Associates has hired Ken Monahan as a senior analyst in the firm’s market structure and technology group, where he will cover FX, listed derivatives and fixed income, among other topics.

Prior to joining, Monahan worked as the principal at Vizier, an independent consultancy specialising in market structure and business development that he founded in 2010.

Before that, Monahan was at Deutsche Bank where, after starting in New York as a trader on the bank’s institutional derivatives desk, he moved into market structure, working with the International Securities Exchange (ISE) to launch the first all-electronic US options exchange.

SmartStream Launches Innovation Team

SmartStream Technologies has launched a new innovation team tasked with creating solutions using artificial intelligence (AI), machine learning (ML) and blockchain technologies, in the areas of reconciliations, cash management, and fees and expense management.

“Highly skilled members of the team include mathematicians, applied data scientists, computer scientists and PhDs, who will focus on the deployment of AI/ML and blockchain models with financial institutions. This includes evaluating optimal AI/ML modelling, data interpolation, running tests, implementations and analysing how AI processes best work within the current product environment by monitoring achievements and optimisation of processes, to enable better business outcomes,” the firm says in a release issued today.