The US Commodity Futures Trading Commission has issued an Order simultaneously filing and settling charges against JP Morgan for what it says was the attempted manipulation and "muscling" of the US dollar ISDAFix 11am benchmark including the submitting of false rates. The order also requires the bank to pay a $65 million civil monetary penalty and is related to actions undertaken by certain of its traders over a five-year period, beginning in at least January 2007 and continuing through January 2012.
With what appears to be immaculate timing, hedge fund investors turned cautious in April 2018 and redeemed $1.9 billion in assets from the industry, just in time for it to produce positive returns in both April and May.
According to the Barclay Fund Flow Indicator, even as the equities markets rebounded and volatility began to calm down, investors withdrew 0.1% of industry assets, which the firm says levelled off at an all-time high of $3 trillion. In April the BarclayHedge Hedge Fund Index gained 0.49% and in May it was up 0.9%, having ended the first quarter -0.7% year-to-date.
Bruce Wolf has left his role as head of FX business development at FlexTrade.
Based in the company’s headquarters in New York, Wolf was responsible for managing sales and business development for FlexTrade’s FX trading solutions for both the buy side and sell side markets.
Prior to joining FlexTrade last year, Wolf spent over four years as global head of banks and brokers sales at EBS.
Before joining EBS in 2013, Wolf worked at Integral Development as managing director, head of Americas, for over two years.
Mark Chesterman has joined Stater Global Markets in a newly created COO role.
Chesterman joins from IG Institutional, where he spent 14 years in a variety of different roles, most recently as COO.
As part of his remit at Stater Global Markets, Chesterman will work closely with CEO, Ramy Soliman on global expansion plans and new product development and he will also oversee the day-to-day activity of the firm.
oliman comments, "Mark played a key role in IG's rapid growth into a FTSE 250 organisation and the world's largest spread betting and CFD brokerage. His extensive experience in trading, operations and management is tailor-made for our requirements. Mark headed up IG's institutional division, overseeing liquidity management and working closely with banks, hedge funds and brokers.
Calvin Tse has joined Citi as head of the banks’ North American FX strategy.
Based in New York, Tse joins from Capula Investment Management, where he had worked as a macro strategist since June 2016.
Prior to that, Tse work for Morgan Stanley as an FX strategist in New York, London and Hong Kong. He joined the bank in 2009 and at the time of his departure in 2016 Tse held the position of head of US FX strategy and was based in New York.
Brazil’s Tribunal of the Administrative Council for Economic Defense (CADE) has approved three Cease and Desist Agreements to settle a cartel probe in the foreign exchange market, involving the Brazilian real and offshore currencies.
The agreements were signed between CADE and the Royal Bank of Canada and Morgan Stanley Bank, as well as Pablo Frisanco de Oliveira, a former Deutsche Bank trader in local markets. A total of BRL 42.9 million ($13 million) will be collected for the Fund for the Defense of Diffuse Rights, as a pecuniary contribution, CADE says.
Citi has paid $100 million after reaching a settlement with 42 US states’ Attorneys General over allegations it manipulated the benchmark interest rate USD Libor.
The Attorneys General alleged that Citi misrepresented the integrity of the Libor benchmark to state and local governmental, not-for-profit, private, and institutional trading counterparties by concealing, misrepresenting, and failing to disclose that it, at times, made USD Libor submissions to avoid negative publicity and protect the reputation of the bank. This is the third fine paid by a bank relating to this investigation.
Adam Margolis, formerly the global head of FXLM bank sales at Citi in London, is now the head of FX advisory at Citi Private Bank in Singapore.
He has been with Citi since 2010, initially joining the bank as head of EMEA FX bank sales.
Prior to that, Margolis spent 10 years at Goldman Sachs, where he worked as vice president responsible for FX sales to financial institutions.
A Securities and Exchanges Commission (SEC) official explicitly stated today that he does not consider bitcoin and ether (the native cryptocurrency of the Ethereum network), to be securities.
Speaking at the Yahoo Finance All Markets Summit in San Francisco, William Hinman, the
Director of the Division of Corporation Finance at the SEC, gave a speech about whether digital assets should be considered as securities.
Hinman pointed out that the network upon which bitcoin functions has always been decentralised and therefore there is no central third party “whose efforts are a key determining factor in the enterprise”.
A new paper published by the UK’s Financial Conduct Authority (FCA) claims to throw new light on events surrounding the sterling flash crash of October 2016 by being the first paper to use trade reports to the FCA under EMIR to analyse how different market participants react in times of market stress and their impact on the liquidity dry-up in a flash crash.
The paper has, however, triggered some confusion amongst market participants thanks to ambiguous terminology, mainly the constant reference to “OTC derivatives”, without specifying exactly what products it is talking about.