The fallout from the investigation into FX market practices continues with reports naming some of the traders targeted by the Swiss financial authority, Finma, in its investigation into events around the WMR Fix; and news that Bank of New York Mellon dismissed a trader earlier this year due to code of conduct breaches.
Bloomberg reports that UBS’s former co-global head of FX, Chris Vogelgesgang, chief dealer Niall O”Riordan and currency trader Sven Schneider are among the group of traders to be targeted by Finma. Vogelgesang and O’Riordan were suspended in late 2013 by UBS and Schneider was among a further group of traders suspended in March 2014.
Profit & Loss understands that Vogelgesang and O’Riordan are being investigated over a failure of management oversight rather than specific instances of front running and the improper sharing of information.
O’Riordan raised concerns about activity around the Fix at several Chief Dealer Sub Group meetings of the Bank of England sponsored FX Joint Standing Committee and the recent Grabiner Report into the Bank’s role in the Fix issue lists a conversation O’Riordan had with then BoE chief dealer Martin Mallett in March 2012 in which the former notes that internal investigations at UBS “18 months earlier” had uncovered evidence of ruble traders talking to each other.
In the conversation O’Riordan asked for Mallett’s view on the “chat” going on around fixes and thanked him for putting the item on the next chief dealers’ meeting.
Meanwhile in a separate development, reports state that John Smailes, a spot trader on Bank of New York Mellon’s spot desk in London, was dismissed in May for a breach of the bank’s code of conduct. A source familiar with the matter tells Profit & Loss the breach was related to “chat room participation” but declines to elaborate further.