Tag: Amicus Brief

Amicus Brief

Second Johnson Amicus Brief Highlights “Intrinsic” Pre-Hedging Role

A second Amicus Brief filed in the Mark Johnson appeal stresses the risks associated with providing FX services to clients around the Fix and argues that pre-hedging is intrinsic to handling orders at the mechanism.

The Amicus from Professor Torben Andersen, the Nathan S. and Mary P. Sharp Professor of Finance at the Kellogg School of Management at Northwestern University says that without the ability to pre-hedge, dealers would have no economic incentive to trade as principals with customers at the Fix.

“When dealers trade as principals at the Fix, they typically pre-hedge their trades by executing a number of smaller transactions before the Fix time,” the Amicus states.

ACI FMA Amicus Brief Calls for “Illogical” Government Argument to Be Overturned in Johnson Case

ACI – The Financial Markets Association (ACI FMA) has filed an Amicus Brief on behalf of former HSBC FX trading head Mark Johnson, who is appealing his conviction and sentencing earlier this year for several wire fraud offences.
In the Amicus ACI says that if the US government’s “Illogical” position is allowed to stand, and the conviction is not overturned, bank dealers are unlikely to operate in the face of potential criminal sanctions simply for transparently and fairly hedging the uncompensated risk of “colossal loss” to their shareholders.

And Another Thing…

In this column on June 7 2018 I wrote that the time had come for someone to show industry leadership when it comes to arguing the foreign exchange industry’s corner specifically around pre-hedging and Mark Johnson’s pending appeal. I looked particularly at the industry associations and, some believe, called them out on it. It is pleasing to see that there is a response from the industry, but it is not yet enough and more can be done – especially by one or two associations.

Q&A With Bruno Langfritz – ACIFMA to Deliver Amicus Brief in Johnson Trial

It has been revealed that ACI – The Financial Markets Association (ACIFMA) is to draft an Amicus Brief, an expert submission on technical details, in defence of Mark Johnson, who is appealing his conviction in a US court for wire fraud relating to an FX hedging transaction for Cairn Energy. Johnson was sentenced to two years in jail following his conviction, but has since won an application for bail pending the appeal. Bruno Langfritz, chairman of ACIFMA talks to Profit & Loss about the Amicus Brief initiative.