US Fed Bans Former FX Trader From Banking

The US Federal
Reserve Board has banned former Barclays and UBS FX trader, Matthew Gardiner,
from working in the banking industry for his manipulation of FX pricing

board says that from January 2008 until at least January 2013 that Gardiner “routinely
engaged in unsafe and unsound conduct” that included disclosing confidential
customer information to traders at other banks and coordinating the trading of
EUR/USD in relation to FX benchmarks with traders at other banks.

order issued by the board today also says that he coordinated with traders of
other institutions regarding the bid/offer spreads offered to customers and had
“agreements with traders of other institutions to refrain from trading against
each other so as not to impact the market rate of a currency in which another
chat room participant was transacting”.

enforcement action against Gardiner follows the Board’s May 2015 enforcement
actions against both Barclays and UBS for unsafe and unsound practices related
to their compliance and control failures concerning practices in the FX

actions required UBS
and Barclays
to collectively pay $684 million in penalties for control deficiencies related
to FX trading.

Galen Stops

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