Tag: Federal Reserve Board

Federal Reserve Board

Fed Seeks to Bar Third Former Barclays FX Trader

The Federal Reserve Board has announced that it is seeking to permanently bar Peter Little the former head of the G10 FX spot desk at Barclays in New York, from employment in the banking industry. The central bank is also seeking to impose a $487,500 fine on Little, who joined HSBC in New York in mid-2013 as head of G10 spot FX trading.
Little, who is believed to be preparing to challenge the Fed’s finding, is alleged to have engaged in unsafe and unsound practices.

Ashton Loses Appeal Against FX Ban and Fine

The US Federal Reserve has refused to stay a motion issued last year that banned former Barclays FX trader Chris Ashton from the FX industry and fined him $1.2 million.
Ashton appealed the decision, which was originally announced in 2016, only after it had formalised the ban last year, claiming, the Fed says, that the final notice was not relevant in the jurisdiction in which he resides – the UK – and that it was not served in a correct manner.

And Finally…

Yet again as I find myself wondering about the timing of an official sanction. The Federal Reserve Board has fined HSBC for “unsafe and unsound” practices in its FX business, but in doing so has made an explicit link between the sanction and the ongoing trial of Mark Johnson in a US court. The Fed has “previous” for doing this of course, but last time the case in question was offshore and pending – this time it’s happening down the road.

HSBC Fined by Fed for “Unsafe and Unsound” FX Practices

The Federal Reserve Board has fined HSBC just over $175 million for the firm’s “unsafe and unsound practices” in its FX trading business.
The Fed says it levied the fine for deficiencies in HSBC’s oversight of, and internal controls over, FX. It adds that the firm failed to detect and address its traders misusing confidential customer information, as well as using electronic chatrooms to communicate with competitors about their trading positions.
The Board’s order requires HSBC to improve its controls and compliance risk management concerning the firm’s FX trading.

Fischer Resigns from Fed Board

Stanley has Fischer submitted his resignation as vice chairman and as a member of the Board of Governors of the Federal Reserve System, effective on or around October 13, 2017. He has been a member of the Board since May 28, 2014. During his time, he served as chairman of the Board’s Committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research. He represented the Board internationally at the Financial Stability Board, the Bank for International Settlements, the G20, the G7, the International Monetary Fund, and the Organisation for Economic Co-operation and Development.

Fed Bars Second Former Barclays FX Trader

The Federal Reserve Board has barred Michael Weston, a former FX trader at Barclays, from participating in FX markets.
Weston, who becomes the second former Barclays trader to be banned by the Fed after Chris Ashton last year, was found to have engaged in “unsafe and unsound practices” by using electronic chat rooms to discuss the coordination of trading around FX benchmark fixes.
He was also found to have disclosed confidential information of Barclays and its customers to traders at other organisations.