Tag: fines

fines

RBC, TD, Settle FX-Related Fines

Royal Bank of Canada and TD Bank have succeeded their bid to settle a regulatory action brought by the Ontario Securities Commission (OSC) over compliance failures in their FX businesses by paying a combined CAD 24.45 million. The OSC approved the agreements on Friday, noting that the failures allowed RBC and TD FX traders to […]

In the FICC of It

In this week’s podcast Colin Lambert attempts to answer Galen Stops’ question, why are some banks fined more than others for what appears to be the same conduct? Stops then attempts to answer a long list of questions from Lambert on the “digital asset” world, and also shares some of his observations from a big […]

EU Fines Five Banks for FX Manipulation

The European Union has formally fined five banks a total of EUR 1.07 billion for taking part in what the EU terms two “cartels” in the spot FX market, involving trades in 11 currencies. Two settlement decisions have been announced, the first involves a group called the “Three Way Banana Split” which sees a total […]

And Finally…

So we brace ourselves, as an industry, for more bad headlines about conduct in the FX markets, however in contrast to previous instances, the industry should be ready on this occasion. The culmination of the European Union’s clearly exhaustive and complicated investigation into events that first came to light six years ago is upon us […]

What to Make of the Cartel Acquittal?

Shortly after we published the news that Richard Usher, Rohan Ramchandani and Chris Ashton, the three members of the now notorious “Cartel” chat room, were found not guilty of FX market manipulation by a New York court last Friday, my phone started buzzing.

Lots of the activity was WhatsApp messages and phone calls from various industry sources wanting to chime in regarding the decision, and one thing that has been interesting in the intervening time is that my sources seem to be split about whether they’re surprised regarding the outcome of the case.

“I know that they only release choice bits of the chat room transcripts to the public, but what came out looked pretty damning to me. I’m surprised that they’ve been able to get out of this one,” opines one market source.

Deutsche Bank Fined $205m by New York DFS for FX Misconduct

The New York Department of Financial Services (DFS) has fined Deutsche Bank $205 million as part of a consent order for violations of New York banking law.

As investigation by the DFS determined that from 2007 to 2013 Deutsche Bank repeatedly “engaged in improper, unsafe, and unsound conduct in its foreign exchange business due to its failures to implement effective controls”.

In addition, the DFS says that for certain time periods parts of Deutsche Bank’s electronic trading platforms had the potential to improperly disadvantage customers and improperly affect markets, when certain applications did not perform as intended.

Societe Generale Hit with $750m LIBOR, Euribor Fines

The Commodity Futures Trading Commission (CFTC) has fined Societe Generale (SocGen) $475 million, and the US Department of Justice (DOJ) another $275 million, for attempted manipulation of and false reporting in connection with the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (Euribor).

More specifically, the CFTC accused the French bank of attempted manipulation of and false reporting in connection with the LIBOR for US Dollar, Yen and Euro, and the Euribor, certain instances of manipulation of Yen LIBOR, and aiding and abetting traders at another bank in their attempts to manipulate Euribor.

This misconduct apparently spanned more than six years, from 2006 through mid-2012.

Goldman Fined $109.5m for FX Misconduct

Goldman Sachs has been fined $54.75 million by the US Federal Reserve (Fed) and New York Department of Financial Services (NYDFS) for “unsafe and unsound” practices in its FX trading business.

This fine is part of a consent order that the bank has agreed to that will also see it submit to NYDFS written plans for enhanced internal controls and compliance risk management.

The fine announced today stems from an investigation by NYDFS determining that from 2008 to early 2013, Goldman Sachs FX traders participated in multi-party electronic chat rooms, where traders, sometimes using code names to discreetly share confidential customer information, discussed potentially coordinating trading activity and other efforts that could improperly affect currency prices or disadvantage customers. 

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.

Heads Will Roll: First Individual Pleads Guilty to FX Manipulation

Jason Katz, who formerly worked as an FX dealer at Standard Bank, Barclays, BNP Paribas and ANZ, has become the first individual to plead guilty to participating in a price-fixing conspiracy in the FX market, the US Department of Justice (DoJ) announced today.

According to the relevant court documents, Katz was a dealer of Central and Eastern European, Middle Eastern and African (CEEMEA) currencies on the New York FX desks of three successive financial institutions, and from approximately January 2007 until July 2013, he conspired with FX dealers at competing institutions to “suppress and eliminate competition” by fixing prices in CEEMEA currencies, in violation of US law, according to the DoJ.