Monday, February 10, 2014

In FX it's Not just the Fix under Investigation; Are Banks Racing to the Regulators?

In addition to the fix and traders trading for their personal accounts, banks are reported to have found instances of traders providing "sensitive information" (which we assume to be customer orders) to other customers and of having traded against their clients' interests by defending or preventing a breach of fx levels that will cause the client to receive an option payout.
WSJ

These allegations are reported to have been uncovered by banks during internal investigations of the fix allegations.  That leads us to this article by Reuters which says that UBS approached investigators last September to provide evidence of misconduct in an effort to get preferential treatment from the regulators when/if punishments are meted out to banks.  We had a prior post regarding the 'first mover advantage" to a bank being the first to provide evidence to regulators (see here May a Bank Tell All to Regulators?)


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