FleeceBook: Meet Michael Cross, Head Of FX And "Market Intelligence" At The Bank Of England

Tyler Durden's picture


Last week we introduced our readers to the BIS' Head of Foreign Exchange and Gold, Benoit Gilson. As this week's induction into the FleeceBook hall of fame of faceless individuals behind the scenes whose fingers are on all the relevant buttons, we present to you Michael Cross, Head of Foreign Exchange, and Executive Director for Markets, at the Bank of England, a role which with the arrival of the BoE's new Goldman leader will become quite crucial in the coming weeks as the race to debase finally crosses the English Channel and it is cable's turn to crash and burn against all other currencies.

A quick look at Mr. Cross's bio courtesy of FX Week:

After graduating from Cambridge University with a PhD in History, Michael Cross joined the Bank of England in 1990. His first job was in clearing and settlement policy in the equity and futures market, followed by two years working in the supervision of discount houses.

In the mid-1990s, Cross returned to Cambridge to complete an MPhil in Economics before returning to the Bank of England to work in the sterling markets division under Paul Tucker, now deputy governor for financial stability, and the internal favourite to succeed Sir Mervyn King as governor next year.

In 1997, Cross was seconded to the International Monetary Fund as personal assistant to managing directors Michel Camdessus and Hoerst Kohler. He returned to the Bank of England in 2000 to work in the monetary analysis division as a senior manager.

In 2003, Cross moved to the markets division of the bank, initially as chief reserves manager and head of market intelligence, reporting to Paul Fisher, then head of the FX division.

In 2007, he was promoted to head up the sterling markets division, while retaining the market intelligence role. He succeeded Paul Fisher as head of FX in 2009, when Fisher was promoted to executive director for markets.

Based in London, Cross continues to report to Fisher and is also a member of the markets committee of the Bank for International Settlements. He is married with two children.

* * *

Some more on his day to day responsibilities:

While chairing the FX Joint Standing Committee is the role that brings Michael Cross into most regular contact with the upper echelons of the FX market, it is only a very small part of his day-to-day responsibilities as head of foreign exchange and reserves management at the Bank of England.

The job involves two main functions. Firstly, Cross is responsible for managing the bank’s FX desk, which is staffed by six traders and chief dealer Martin Mallett. The desk’s primary function is to carry out FX hedging through spot and forward contracts, mainly on behalf of UK government departments. The desk also runs a foreign currency deposit business for other central banks.

The second part of the role is to head up the reserves management function, which is staffed by a team of around 14. The Bank of England’s own FX reserves total roughly $6 billion, held in G-3 government bonds and kept in case the monetary policy committee (MPC) should ever decide to intervene in the FX market, which it never has to-date. Since 1992, intervention has only ever taken place in concert with other central banks, as in March 2011 when G-7 central banks stepped in to stem the acute appreciation of the yen following the Japanese earthquake and tsunami.

A far larger pool of FX reserves – now totalling around $100 billion – is held by the Bank of England on behalf of the UK government. Up until 2010, that figure had been closer to $60 billion, but the coalition government that came to power that year decided to increase the size of the reserves, in part as a means of funding a likely increase in contributions to the International Monetary Fund as the Greek debt crisis was in its early stages.

“The process of building up the government’s reserves over the past two years has been fairly straightforward as we invest in the most liquid government bonds denominated in G-3 currencies. The build-up has been funded out of gilt issuance, and for the most part the government likes to hedge reserve assets back to sterling. So we have been buying bonds on a currency swapped basis and we’ve discovered we are one of the bigger participants in the sterling cross-currency basis market, which has presented some issues in terms of counterparty management and selection,” says Cross.

On top of his FX and reserves responsibilities, Cross also has a major internal policy role, having had oversight for the bank’s market intelligence function ever since it was conceived in 2003 under the initiative of Paul Tucker, then executive director for markets. While he was still chief reserves manager in 2003, Cross was appointed as the bank’s first head of market intelligence in addition to his day job.

The market intelligence function today covers 23 separate markets and products, each monitored closely by a manager and several analysts. When Cross became head of the FX division in 2009, he relinquished the market intelligence role but the head of market intelligence, currently Jonathan Rand, continues to report to him. For Cross, the responsibility includes general oversight and regular presentations to both the MPC and the new Financial Policy Committee that will come into effect next year.

The market intelligence function came about because Paul Tucker realised that a modern central bank in a major financial centre needs to know about every market, not just the ones it operates in, so he and I set up a system that aims to cover all asset classes and types of intermediary and end investor. It was massively ambitious, but it does mean we know something about everything rather than a lot about not very much,” Cross explains.

Read more on Mr. Cross here

* * *

Finally, for some fun weekend reading, here is Mr. Cross with his thoughts on the role of the Bank of England in the gold market. Oddly enough, no mention of Libor anywhere.

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Fri, 01/04/2013 - 16:46 | 3123674 cossack55
cossack55's picture

Is his middle name "Double"?

Fri, 01/04/2013 - 16:47 | 3123677 GMadScientist
GMadScientist's picture

No, "Right"!


Fri, 01/04/2013 - 16:51 | 3123690 ZerOhead
ZerOhead's picture

After graduating from Cambridge University with a PhD in History, Michael Cross joined the Bank of England in 1990.

Let me guess... he's another student of 'How to engineer another Great Depression' just like Bernanke...

Fri, 01/04/2013 - 16:56 | 3123724 knukles
knukles's picture

Lemme see here:
Error of commission; responsible for ... (God awful, be damned) ... equities.  They deal in equities fior their own account.
Well, well, well...

Error of omission; no mention of gold... when the BoE is responsible for oversight of LMBA, and the City...
But no mention of gold...

(shhhhh, Knuks or they'll come get you....)

Fri, 01/04/2013 - 17:06 | 3123771 Michaelwiseguy
Michaelwiseguy's picture

Meet an American Patriot railroaded by our criminal government;

US Marine Sgt Held Hostage By Gov And Gag Order Placed On Him To Silence Him!


MARINE Veteran who served 8 yrs in Iraq has been unlawfully convicted to 30 yrs in prison! His crime: Speaking out against the wars!

A gag order was placed over Sgt Charles Dyer, and he was told he would be arrested if he spoke out about the events that took place during his first trial in Stephens County Oklahoma!


Fri, 01/04/2013 - 17:48 | 3123943 candyman
candyman's picture

Thomas Jefferson said, "If the present Congress errs in too much talking, how can it be otherwise in a body to which the people send one hundred and fifty lawyers, whose trade it is to question everything, yield nothing, and talk by the hour? "



Fri, 01/04/2013 - 16:50 | 3123696 DoChenRollingBearing
DoChenRollingBearing's picture

And his address?

Fri, 01/04/2013 - 16:59 | 3123735 ZerOhead
ZerOhead's picture

Somewhere in Hell I'm sure...

Fri, 01/04/2013 - 17:05 | 3123765 chubbar
chubbar's picture

Everyone who would like to tell Congress to lay off the gun ban routine, please follow this link to the "take action" center and there is an already filled out email if you fill in your area code and personal info. Please inundate these assholes trying to circumvent the constitution!


Fri, 01/04/2013 - 16:46 | 3123675 Wakanda
Wakanda's picture

"...as the race to debase finally crosses the English Channel..."

Fish 'n Chips and pints ready for this "veddy prop-aah" clusterfuck.

Fri, 01/04/2013 - 16:47 | 3123676 Apeman
Apeman's picture

The face of the enemy.

Fri, 01/04/2013 - 16:58 | 3123732 LeisureSmith
LeisureSmith's picture

One more horse-faced menace to society. Is he by any chance related to Shillary Clinton's replacement?

Fri, 01/04/2013 - 17:04 | 3123756 Bicycle Repairman
Bicycle Repairman's picture

No this horseface is English.  Our horseface is ersatz Irish.

Fri, 01/04/2013 - 17:13 | 3123805 Fuh Querada
Fuh Querada's picture

Wins the leather phallus award for smoothness.

Fri, 01/04/2013 - 16:54 | 3123686 Glass Seagull
Glass Seagull's picture


Glorified paper salesman.

<Dwight Schrute Photo>

Fri, 01/04/2013 - 16:55 | 3123718 Number 156
Number 156's picture

Market Intelligence?

I would seriously hate to be in his shoes, not 'if', but WHEN their little fantasy ends.

Frankly, I wouldn't even want to be in my shoes when it all goes pear shaped. Its going to be a horrible experience for everyone.

Either way, the torches and pitchforks will stop at his house first.

Sat, 01/05/2013 - 08:03 | 3124952 TwoShortPlanks
TwoShortPlanks's picture

"not 'if', but WHEN their little fantasy ends."....you mean, WHEN their little fantasy comes true?!

Fri, 01/04/2013 - 16:58 | 3123728 buzzsaw99
buzzsaw99's picture

He looks like the guy who drives the hearse in the movie Phantasm.

Fri, 01/04/2013 - 17:09 | 3123759 Yen Cross
Yen Cross's picture

 Big Time/ funny one buzz. He just needs one of those(flying) silver globes sticking out of the front of his head.

Fri, 01/04/2013 - 18:07 | 3124004 buzzsaw99
buzzsaw99's picture

did you say "silver"? -  it only works on werewolves and the tall man. lulz lulz

Fri, 01/04/2013 - 17:05 | 3123764 ZerOhead
ZerOhead's picture

< Hearse Driver in Phantasm

< Not Hearse driver in Phantasm


Fri, 01/04/2013 - 17:04 | 3123757 debtor of last ...
debtor of last resort's picture

Cross your fingers Michael. You're on the list.

Fri, 01/04/2013 - 17:09 | 3123785 Jack Sheet
Jack Sheet's picture

....Cue for participant " IntheMix96" for continued enlightening observations on INBREEDING in the British Establishment....

Fri, 01/04/2013 - 18:12 | 3124014 Muppet Pimp
Muppet Pimp's picture

you lot are a bunch of cunts all of you

That guy was pretty funny while it lasted

Fri, 01/04/2013 - 17:14 | 3123811 Fuh Querada
Fuh Querada's picture

A shitload of fancy $1000 words for money printing.

Fri, 01/04/2013 - 17:26 | 3123853 falak pema
falak pema's picture

He looks totally washed out. A candidate to be annointed to the hall of fame of the UK Ivy league of Oxbridge, like the ivy league of Harvard-Yale, or the école nationale  d'administration of France, the greatest shit fest of "the best and brightest" of France's economic paedophilia of "unique frenchified soft fascist government-corporate hand in hand rosy-posy combinat". Our unique solution to make a breed of five legged animals that never go anywhere except to the waste paper basket. Dump, dump and double dump. 

Viva the new proto-fascist norm of government-oligarchy collusion ad nauseum on a global scale. 

Fri, 01/04/2013 - 18:34 | 3124061 Pairadimes
Pairadimes's picture

I would be too embarrassed to work in the financial services industry with the phrase 'market intelligence' on my business card.

Fri, 01/04/2013 - 18:42 | 3124083 prains
prains's picture

yet another fuck knuckle who couldn't manage to open a car door without help. where is this place that spawns these marshmallows living in suspended animation, i need a rest

Fri, 01/04/2013 - 19:26 | 3124114 Radical Marijuana
Radical Marijuana's picture

"Cross is also a member of the markets committee of the Bank for International Settlements." A good sign of deserving membership in Fleecebook rolls would be having multiple appointments, including to the BIS. As Carroll Quigley pointed out, BIS was developed to become the central banks' central bank, and so, BIS amounts to a sovereign power over sovereign powers.

BIS is the Fraud King of Kings.

Fri, 01/04/2013 - 20:14 | 3124250 smacker
smacker's picture

The most important fact about Cross is that he went to Cambridge.

As did these other traitors on the Moscow payroll:  http://www.bbc.co.uk/history/historic_figures/spies_cambridge.shtml

Now exactly where was Mervyn "King of Inflation" educated?

Fri, 01/04/2013 - 20:23 | 3124263 Quinvarius
Quinvarius's picture

As a parallel with the government’s gold lease facility on the Bank of England’s side, which grew out of our role as custodian, is that we used to accept gold unsecured deposits from other central banks and then on place them in the market in our own name at a price that took into account the operational and credit risk involved.

So they admit it.

Fri, 01/04/2013 - 20:26 | 3124271 Enslavethechild...
EnslavethechildrenforBen's picture

They're backed by the full force of the Military, they have nothing to hide because there are no consequences.

Fri, 01/04/2013 - 22:03 | 3124346 Aurora Ex Machina
Aurora Ex Machina's picture

Which is precisely why the Argentinan issue is being allowed to play in the MSM; or did you miss Eliz II making her statements before the New Year? Or the Sun newspaper doing their advert? It's called having a Security council seat, nukes and Trident.

All else is smoke and mirrors.

I would have placed a nice short clip of Yoda stating "Much to learn you still have", but the combination of the MPAA and people abusing tags, and bandwagoning on Google's parsimonious algos mean there's no clip that I can find of Yoda [in a film from 20+ years ago] saying it.

This is the best I could do

Oh, and top tip: the MPAA / US copyright peeps and Google not bothering to police their algo-name-instances can both burn for all eternity.

Google: You had it, now you're losing it.

Hollywood: I hope one day, the entire scam of "Hollywood Accounting" is brought to your door in flames and blood.


Comment: All of American woes can be traced to the idea of "Hollywood Accounting". It infected your society so early, and so virally. And you put $443 million into the Sandy Bill for them?

The fools have you, and they're taking the piss.


Winter is coming.

Prepare, for we are not merciful (my brothers and sisters who deem me weak in my penchant for your species). And a full version of that song you just heard, with echoes of Rocky Horror. As ever, the full version is far more illuminating. I'd throw in some Soviet film, but your culture is so bastardised that it wouldn't mean anything to you anymore. Suffice to say: when it comes, you will have no recourse to "justice". El-ahrairah can turn (full irony engaged Black Metal here).


Meh. The sublime is not hard.

Fri, 01/04/2013 - 22:02 | 3124431 newengland
newengland's picture

The court of public opinion is inclined to accept your guilty plea, Michael Cross, and the Nuremburg rule applies in your instance, ironically.

You admit a key role in 'intelligence' of all markets in all places, and boast about your prowess. Therefore, you were aware of many crimes committed, and did nothing to stop them. Indeed, you and your cohorts continue to profit. You show no remorse, and offer no mitigation for your central role.

Damned by your own words, you will be sentenced in due course. I recommend that you be prosecuted with extreme prejudice, old boy, just as you have wreaked havoc upon millions, and intend to continue doing so...until stopped.

Sat, 01/05/2013 - 05:53 | 3124864 smacker
smacker's picture

"...the Nuremburg rule applies in your instance..."

This is an interesting point. I have long believed that this rule should form part of judicial systems, because I see nothing wrong in holding people accountable for their actions whether they were simply following orders or not. If it were, 2/3rds of the British political elites/Establshment, including the top echelons, would be wiped out overnight and now be spending time in the slammer for complicity in crimes.

Sat, 01/05/2013 - 04:38 | 3124834 Youri Carma
Youri Carma's picture

Also See:

Bank of England chief (Mervyn King) : 2013 threatens forex wars http://www.marketwatch.com/story/bank-of-england-chief-2013-threatens-forex-wars-2012-12-10

Sat, 01/05/2013 - 06:20 | 3124880 smacker
smacker's picture

The only war that Mervyn "King of Inflation" should be fighting right now is how to keep himself out of jail for Misconduct in Public Office. By a) flooding the UK economy with cheap money from 2000 onwards which led to the unsustainable housing/credit boom, and subsequent collapse of the economy. And b) his complicity in LIBOR rigging from 2004 onwards (there being no possibility of him not being fully aware and involved in it, if not instrumental in running it).

A jury should be given the opportunity of deciding, but never will be as the SOCA (Serious Organised Crime Agency) will never investigate and the CPS (Criminal Prosecution Service) would in any event block prosecution.

These crimes make his complete failure at maintaining UK CPI at about 2% during his term office look almost trivial. But instead of being arrested and charged, surprise, surprise, he was Knighted and is now to be known as Sir Mervyn "King of Inflation". The British Establishment always rewards its failures whilst the taxpayer foots the bill.

You couldn't make this up.

Mon, 01/07/2013 - 01:32 | 3128816 WTFUD
WTFUD's picture

smacker its a cracker. remember uncle Bob D Barkless threatned to bring da house down 24hrs before televised hearing ; hubris to save his neck. If merv the perv or timmy G were outed then da whole ship sinks and that's not cricket.

Mon, 01/07/2013 - 04:48 | 3128949 smacker
smacker's picture

LOL.  You're either a Brit or an American (or perhaps an Aussie) who understands very well how the systemically corrupt British Establishment operates :-)



ps FYI: I now hear that David Cameron is threatening to fight if Argentina's President continues to claim The Falklands as its own territory. Well, in the words of Gerald Celente: "That's fine. Let's set it up and put it on Pay Per View TV."

Sat, 01/05/2013 - 08:52 | 3124986 dunce
dunce's picture

"Race to debase" good assonance and concise accurate description of the central banks money printing hysteria.

Sat, 01/05/2013 - 12:32 | 3125202 IamtheREALmario
IamtheREALmario's picture

He does not look quite as gay as the other guy ... but probably is.

Sat, 01/05/2013 - 13:28 | 3125309 Venerability
Venerability's picture

If JPM - as telegraphed by its CNBC minions - truly tries to pull a Megamove against Silver this month because some of their London contingent is now in such serious, serious trouble, they are drowning in their own muck, I think this time, those on Our Side need to do everything in our power to stop them.

Several generations of Silver and Silver stock investors have now been burned by the neverending three-card monte moves involving the Dresdner - No, Bear - No, JPM - No, Too Entangled to Claim Ownership - Silver Short that never dies, but simply bloats and bloats and bloats some more, with no restrictions, because everyone is still terrified that if it is pricked, whatever is inside will spread over World Markets like some derivative-based pink slime.

I say, Enough! Basta! No Mas!

This one Mutant Short Position has done so much damage to the World in so many ways, it is time for it to be obliterated forever for the sake of some little shred of Honesty and Integrity and some Micro-particle of Reality returning to our Markets. 

It's high time for even the Quantiest of Quants to admit that the Mutant Short has hurt them as much or more than everyone else through the years.

It's also a solution to at least some of our woes that BOTH sides of the equation - Hard Money people and Managed Money people - could agree on, if they worked out the details behind the scenes in tandem.

Yes, I really believe it is possible.


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