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Regulation

OTC Reform Pre-empts Expected Exchange Invasion Data from the Bank for International Settlements show financial reform has not led to a greater proportion of derivatives trading on exchanges. Colin Lambert finds out why. As the world’s regulators, led by a very aggressive Gary Gensler-led Commodity Futures Trading Commission (CFTC), sought to reform financial markets post-global financial crisis, the outcome seemed at the time to be the inevitable growth of trading on exchanges. “The world is moving to Chicago” was used as an analogy to express this sentiment – that city being closely associated with the exchange model of course.
An Incomplete Picture: Spotting the Spoofer in FX The incarceration of a trader convicted of spoofing has heightened awareness of the practice, but how hard is it to spot and how prevalent is it in FX? Colin Lambert investigates. “You have to be pretty desperate to resort to spoofing markets – especially on exchanges where it’s nigh on impossible to shield your activities,” argues a senior electronic trader in London. “Even in OTC markets it’s not easy to get away with given the MIS capabilities of firms today.”
FX Trader Arrest: Do Not Pass Go, Do Not Collect $8m Two UK-based FX traders have been charged with wire fraud by the US Department of Justice, one of which has been arrested in New York. Galen Stops reports on the case. On July 19, Mark Johnson, the head of global FX cash trading at HSBC, was arrested at New York’s JFK airport in connection with an ongoing investigation by the US Department of Justice (DoJ) into currency rigging. Two days later, the DoJ officially brought charges against Johnson and Stuart Scott, former head of FX cash trading for EMEA at HSBC, for wire fraud.
Ending a Never-Ending Saga: Truth and Reconciliation in FX Should a line be drawn in the sand over alleged misconduct in FX markets? Colin Lambert sees benefits in the idea. The list of FX traders taking their former employers to court for unfair dismissal grows almost by the week, ...
FEMR – Another Brick in the Wall? The UK’s Fair and Effective Markets Review was eagerly awaited and generally well received, but, Colin Lambert asks, has it actually changed anything?If the level of fanfare was directly correlated to the impact of a release, then the ...
At their recent joint meeting in Tokyo, the global FX committees agreed and released new guidance for market participants, as Colin Lambert reports. With conduct so high on the FX industry’s agenda, representatives of the eight global FX committees ...
Proponents of time-stamping have long highlighted the potential benefits of the practice in helping to en- sure best execution, creating a secure audit trail and potentially countering claims of malpractice in the market. But how practical would it be for ...
The Made Available to Trade (MAT) rules being introduced by the Commodity Futures Trading Commission (CFTC) are causing further fragmentation of liquidity in the swaps market, according to a new report.The research, published by the International Swaps and Derivatives ...
UBS is understood to be in line to receive immunity from any fines imposed by the European Commission as a result of its investigation into alleged manipulation of the FX markets.It was the first of the banks implicated in ...
Extra-territoriality has rushed back to the top of the regulatory agenda – thanks to the CFTC. Galen Stops reports. In November, the Commodity Futures Trading Commission (CFTC) responded to the widespread confusion amongst market participants regarding the SEF rules by issuing ...