This page has been archived and commenting is disabled.
How Banks Continue FX Rigging Right Under The SEC's Noses
The good news is that the rigging of the FX markets - now conspiracy fact, not conspiracy theory - has, according to Bloomberg, forced the world’s biggest banks to overhaul how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation with the "modernization of processes that probably should have been brought in 15 or 20 years ago." However, the FX market is far from 'clean' as Bloomberg notes, while banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are still communicating with clients and counterparts at other firms via Snapchat, circumventing their company’s controls right under the nose of the SEC. As one trader commented, "these [reform] changes look like fig leaves."
As Bloomberg reports, positive changes are happening (on the surface)...
The world’s biggest banks are overhauling how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation.
Barclays Plc, Deutsche Bank AG, Goldman Sachs Group Inc., Royal Bank of Scotland Group Plc and UBS AG, which together account for 43 percent of foreign-exchange trading by banks, are introducing measures to make it harder for dealers to profit from confidential customer information and take advantage of clients in the largely unregulated $5.3 trillion-a-day currency market, according to people with knowledge of the changes.
Banks have capped what employees can charge for exchanging currencies, limited dealers’ access to information about customer orders, banned the use of online chat rooms and pushed trades onto electronic platforms, according to the people, who asked not to be identified because they weren’t authorized to discuss their firms’ practices.
“This is finally bringing the FX market into the 21st century,” said Tom Kirchmaier, a fellow in the financial-markets group at the London School of Economics who specializes in the governance of banks. “What we’re seeing is a modernization of processes that probably should have been brought in 15 or 20 years ago.”
But, beneath the surface, nothing changes...
“The banks are very concerned about what the regulators are going to do, and this makes them look good,” said Colin McLean, founder and chief executive officer of SVM Asset Management Ltd. in Edinburgh, which oversees more than $900 million. “Maybe they think it protects them somewhat from future regulatory changes.”
...
While banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are communicating with clients and counterparts at other firms via Snapchat, a mobile-phone application that sends messages that disappear, to circumvent their company’s controls, according to a person with knowledge of the practice.
Not everyone is buying the changes...
“For some of the more naive clients, there is still probably gaming going on by the banks because the incentives are there for doing so,” SVM’s McLean said. “These changes look like fig leaves.”
* * *
The rigging continues...
»
- 6397 reads
- Printer-friendly version
- Send to friend
- advertisements -
There are retail clients who've learned to trade these manipulation strategies... not everyone will be happy to see things cleaned up.
In other news, water is wet.
You sound very knowledgeable... please, share!
The SEC Was too busy downloading terabytes worth of adult films on to portable hard drives
http://www.zerohedge.com/news/porn-addicts-formerly-known-sec-take-their...
The biggest problem is that you cannot legislate honesty or ethics. No matter what rules they put in place, there will be rigging, cheating and "loopholes". And with no punishment other than an occasional sacrificial lamb, nothing will change, particularly since the FED, who is the biggest manipulator, cheater of all, sets the tone. Who is punished when a bankster cheats? Does the bankster have all of his personal assets taken away? Does a bankster go to jail (it should be real jail, not Club Fed)? No. The stockholders are punished when the company is fined. And who are those stockholders? Well, a bunch of them are your parents and grandparents, and perhaps you yourself, who hold the stocks either directly or indirectly in mutual funds, 401(k) plans, pensions and other retirement and investment accounts. Yet those are the same people that clamor for the companies to be fined, in essence punishing themselves, and don't do anything when the perpetrator is not fined or jailed. Most banksters wouldn't know an honest transaction if it they saw one. And when their worst deterrent is that they get to keep their ill gotten gains and might be force to retire a bit earlier than planned, well what do you expect? Thieves are attracted to where the stealing is the easiest with the least risk of personal harm to themselves. Until that changes, the thieving and fleecing will go on.
"The biggest problem is that you cannot legislate honesty or ethics. No matter what rules they put in place, there will be rigging, cheating and "loopholes"..."
Do you have an alternative?
Yes, but most of you will not like it. I expect I will get plenty of down arrows for this! Take away all of their personal assets and put them in jail for a very, very long time (minimum 20 years), particularly if one or more victims committed suicide as a result of the financial crime. Then a charge of homicide, and additional jail time, should also be levied. And ban them from working anywhere in the banking/financial industries ever again. When they come out, they can get themselves a fleabag studio apartment in the bad side of town and a job flipping hamburgers, or they can move back in with their parents or other relatives or friends. If they happen do to well financially after they get out, then they will start paying large amounts into a victim's fund. They can keep an annual amount equal to the average annual pay in America. Any amount they earn, are gifted, or otherwise receive in excess of that, from any means, shall go into the victims fund. And no passport or foreign travel privileges. They chose to commit a crime so their punishment is that they are forced to live a simple, non-extravagant life like most of America. If they have rich parents, then I suppose that will be impossible to force. However, if they live in a vacation or second home, or drive a fancy car that does not belong to them, then the market value of those "gifts" will be considered income and they will be required to give them up or pay a fine for any amount that exceeds the average annual income of Americans. No financial criminals will be eligible for food stamps or welfare. You lose that privilege when you choose to commit a crime. They could have chosen to not commit the crime and most of them would still have had a comfortable life. Bad choice, bad consequences.
That will work, because the system is basically sound. Just a few bad apples...
I never implied that. There are a ton of bad apples. But when you start with the executives, it will have the biggest impact. Tone is set at the top.
Don't go half-assed on us; it will still recur if we don't also eliminate the legal fiction of "Limitation of Liability". As was mentioned in the thread where someone thought Rockefeller would have created lower oil prices.... it is not whether the founder has good intentions or not. it is the fact that when he dies, the successor corporate bureaucrats assume control and, with complete immunity, millk the company and fuck the customers..
California dreamin......if only.
you sir are a moron.
" The biggest problem is that you cannot legislate honesty or ethics "
oy. where do i begin with how stupid this sentence is.
Russians, Chinese, Brics are leaving the video game.
When prices for food and energy are decided by playing video games, then world moves on and dumps an excrement on the video game, called USD based financial system.
It is under way, unless....................................$10 trillion are extinguished and bank lobby decimated (which will inevitably happen anyway)
Barry 'Snapchat' Obunker
White House aide1: "Where's he disappeared to now?"
White House aide2: "to the first hole"
White House aide1: "You mean the 1st tee?"
White House aide3: "No, he means the first hole"
White House aide1: "Ahh, I catch your drift"
This is the problem. Too many fucking rules to "get around".
If freedom was legalized we wouldn't constantly have individuals and corporations constantly trying to get around rules.
Let the fucking market do it's shit.
Baseball should just let all manner of "performance enhancing" drugs in- no testing whatsoever. As the market should be cleansed of any and all regulations against "insider trading" or "fixing" of prices. Anything goes. If you're smart enough to trade alongside the biggest cheat, more power to you.
Its what the people want. We should give it to them and hasten the end game.
FX rigging? I just went into V-Fib! Remove the leverage requirements and allow F/X traders to set market precident!
FX is the lubrication that makes global commerce possible!
Add to that: dump the no hedging rule, and you've got something positive for clients who trade on the US broker plantation (nowhere else to go).
(now, you know that will cut into US broker profits...)
The 'no hedging rule is an easy work around'. It just cost's a lot more $ with multiple trading accounts.
I have offshore accounts so I can hedge anyways.
What really peaves me, is CFDS's in American companies can't be traded in america! You can thank that Blond haired faggot "Bart Chilton" for those regs!
Tyler, the (Chinks/ Norks/ Nigerians) keep hijacking my caret and parens keys! "hey you"' > see what I mean?
That's ghost dollar sign would be a good halloween costume for the kids
Or maybe a wicked witch of wallstreet Janet Yellen mask with a black pointy hat and broom
http://www.limitstogrowth.org/WEB-Graphics/HillaryWitchCostume.png
snatch chat? snatch snap? snatch chat! :"_) thats it. snatch chat............ isn't that when the women all go to the bathroom together at the same time............. snatch chat.
we gotta stop these currency manipulating snatch chats
An example of how technology is used for evil purposes, however you cannot stop someone from talking. No real solution to this problem short of banning trading in foreign currency on a large scale religated to a monopoly company which would probably not be a bad thing. However the fact remains it is a tool used to manipulate prices under our noses. The prediction was gold was going to rise so it could be offloaded then it was going to tank.
This story has legs because many people still believe that the SEC is something more than a jobs-program.
you wonder why there's a brics, and why it's catching on, how many times do you have to see your brother in-law stealing from your wallet on the security-cam before you tell him hes not welcome in your house anymore.
The Chinese give 'em hang time: the western puppet governments give 'em Bonuses and Knighthoods and WMDs.
And Rule 575 did absolutely nothing. Why? Because of the Pavlovian experiment of 'rewarding' banksters with tiny ineffectual "punishments", that had the effect of go ahead keep doing what you are doing the punishment is miniscule
The real Forex Riggers. Central banks do it and will keep doing it against every natural law supply and demand. They simply construct supply or withdraw it in order to achieve the desired forex rate. Just look at SNB. One of the absolute biggest culprits together with BOJ. Banks i general only do what they are told to do
Metadata....
http://www.decipherforensics.com/snapchat/
http://decipher-media.blogspot.com/2014/05/how-to-recover-deleted-info-f...
Not that the SEC will impound phones as evidence or ask certain 3 letter agencies for the metadata that they probably have stored at their datacenters.
http://www.theguardian.com/media-network/partner-zone-infosecurity/snapc...
...
The reality is that it is notoriously difficult to remove data from mobile devices simply because of the way data is stored using the 'wear levelling' technique. Since mobile devices are so regularly recycled for newer versions, this means that Snapchat photos that users believe no longer exist may be passed on to unknown third parties, and could be retrieved with forensic software.
Ducklin suggests that if Snapchat cannot guarantee removal of these photos, it should consider 'shredding' them with encryption. "Encrypt each image delivered to X's device with a random key, and keep the key on the Snapchat server until X requests to view the image. That way, the key and the decrypted image only ever need to exist in memory on X's device, and thus implicitly 'disappear' once viewed."
...
http://www.androidcentral.com/securely-wiping-your-android-phone-makes-i...
Not that these guys are smart enough to do this most likely.
The crooks run the markets and the cons run the regulators, why are people surprised by any of this?