Tag: Mark Johnson

Mark Johnson

Former HSBC Exec Found Guilty in FX Fraud Case

Mark Johnson, the head of global FX cash trading at HSBC, has been found guilty of eight counts of wire fraud and one conspiracy charge by a US court.

The jurors in the Eastern District Court of New York announced the decision on Monday.

They found Johnson guilty of defrauding Cairn Energy by using information provided in confidence to HSBC to about a $3.5 billion transaction to front-run the order and generate trading profits. 

Johnson was arrested at JFK airport in New York in connection with this case in June 2016, as Profit & Loss reported at the time. 

And Finally…

George Bernard Shaw is widely attributed with the comment that the English and Americans are two peoples separated by a common language, but the fact is language can very easily take on a different meaning in print than was originally intended when it was spoken or typed. The FX industry has not been taking enough care over the language it uses in communications and that is bait for underperforming clients trying to make a few extra bucks and lawyers sensing an easy kill.

And Finally…

With apologies to those loyal readers who normally part with their hard-earned cash to read this column, today I am going to make it “free to air” – mainly because I feel there is a message that simply has to get out there regarding FX execution and liquidity.
If nothing else, the ongoing Mark Johnson trial in New York is highlighting how there are some seriously poor assumptions made in the wider world about how the FX market really operates.

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’s Execution of Cairn Order “Followed Standard Industry Practice”

Documents lodged by the team representing HSBC’s former global head of FX trading, Mark Johnson, in his defence against market manipulation claims, indicate that should a defence case be needed it will focus on proving that the bank – and Johnson’s conduct – was in line with standard industry practice. Johnson and former head of EMEA FX trading Stuart Scott have been charged by the US Department of Justice with allegedly front running a large fix order from Cairn Energy.

US Seeks HSBC FX Dealer’s Extradition

The US is to file for the extradition of HSBC’s former senior FX trader Stuart Scott from the UK to face charges under its broad wire fraud laws.
According to a report first published by Reuters the US Department of Justice has filed a letter in a in Federal court in New York, stating the US’ intention to initiate formal proceedings to seek Scott’s extradition after learning he did not wish to come to the United States voluntarily to face the charges.

US Justice Department Brings Charges Against Two FX Traders

Mark Johnson, the head of global FX cash trading at HSBC and Stuart Scott, former head of FX cash trading for EMEA at HSBC, have been officially charged by the US Justice Department with conspiring to defraud HSBC clients by front running orders. Profit & Loss reported yesterday on the reports emerging that Johnson had […]