Tag: misconduct


Nice Actimize Unveils Surveil-X Conduct

In an effort to reduce what it terms “the growing risks associated with employee misconduct and market abuse in this current environment”, Nice Actimize has announced the launch of Surveil-X Conduct, a package of machine learning-based applications which the firm says helps financial services organisations assess, manage and mitigate a broad range of conduct risks across the enterprise, […]

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

This week’s podcast sees Colin Lambert and Galen Stops discuss the latest lawsuit facing banks over their actions in FX markets, during which Lambert invokes the spirit of a film that he can’t remember the name of, by asking, “Could you ask me that question again Galen?”

Stops also has a series of questions relating to the Virtu-ITG tie up reported this week as our two podcasters discuss the evolution of the non-bank trading firm business model. Where do these firms expand? Lambert is fairly confident (is he ever not?) that it is not by buying other trading firms, but both men see opportunities away from trading.

They also discuss volatility in crypto markets and ask – at what stage does the institutional enthusiasm for crypto start to weaken?

This week’s podcast also highlights how Lambert giveth…and taketh away…as it is bookended by praise and ridicule for his colleague! Find out why by listening in to this week’s edition.

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. 

Australian Banks Admit Conduct Oversight Failure in FX Businesses

Two Australian banks, National Australia Bank and Commonwealth Bank of Australia, have each made a “benefit payment” of AUD 2.5 million after the local regulator, the Australian Securities and Investment Commission (ASIC) found they had inadequate controls to address risks relating to instances of inappropriate conduct in their offshore FX businesses.
ASIC says it identified attempts to manipulate FX fixes, front running and the inappropriate sharing of information by traders at CBA and NAB between 1 January 2008 and 30 June 2013.