Galen Stops is back on duty for this week's In the FICC of It podcast and he and Colin Lambert have a lot to get their teeth into. Starting with a response to Lambert's question from episode 37 as to why the Cartel were in a chatroom anyway, our podcasters discuss the throwing out of the case against former Barclays' FX head Robert Bogucki in the US.
Staying with that bank, they then discuss a website set up by Barclays' former head of automated trading David Fotheringhame that is "a public defence of last look". Listeners will be glad to hear that Lambert doesn't bang on for too long on one of his favourite subjects, indeed he actually observes that Fotheringhame does a better job of defending the claims from the New York regulator than the bank did itself!
The discussion then moves onto exchanges in FX as out two intrepid podcasters ask, "will scale win the day?" and "how does a small independent firm succeed in such an environment? As always they have the answers (of a sort!) - including Lambert suggesting a market structure that will (finally) lead to the creation of an electronic market in FX swaps. Given he has been predicting such an outcome for more than a decade he is obviously working on the theory that he'll be right one year, thankfully Stops is on hand as the voice of reason to dampen the enthusiasm.