ECB Blames Leak To Hedge Funds On "Internal Procedural Error"

Tyler Durden's picture

Shortly after 6pm London time yesterday, The ECB's Benoit Coeure told a non-public audience of hedge funds in London that "the central bank would moderately front-load its purchases in its quantitative easing program because of the seasonal lack of market liquidity in the summer." The reaction was a 50 pips drop in EURUSD... but this was inside information was not released to the trading public until around 8am London time - and resulted in a 150 pip plunge.



Translation: as we pointed out with the usual dose of sarcasm observing just how rigged everything has become, a select private group of head funds in London were leaked ECB front-loading news 14 hours before The ECB deemed it 'correct' to publicly release the comments...

In his speech, Mr. Coeuré said that the ECB is aware of seasonal patterns in the bond market and that there is generally less liquidity on the market from mid-July to August.


“The Eurosystem is taking this into account in the implementation of its expanded asset purchase program by moderately front loading its purchase activity in May and June,” he said.

Crucial news for anyone, but as The Wall Street Journal reports,

Mr. Coeure’s remarks, delivered Monday night in London to a nonpublic conference organized by Imperial College Business School/Brevan Howard Centre for Financial Analysis, the Centre for Economic Policy Research and the Swiss National Bank...


...prompted a steep slide in the euro and rally in European stocks after they were publicly released early Tuesday, as investors were reassured that the ECB will continue with its aggressive bond purchase program.

But The ECB is unrepentent...

“This was an evening speech under the Chatham House rule, which wouldn’t normally be published. In this case the intention was to publish the speech at the time it was delivered, but an internal procedural error meant this didn’t happen until the morning,” an ECB spokesman said.

*  *  *
Still think the whole 'game' is un-rigged?

That leaves us wondering - just how many other mysterious market moves can be explained by "Chatham House rule" meetings heald by The ECB each day/week/month?

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NoDebt's picture

Corruption is a an internal procedural error.  Got it.  Great euphemism.  Well done, gents.

AlaricBalth's picture


When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed.

In other words, feel free to use this non public information to your own benefit. Just don't reveal your source.

Sounds like the US Congress has been using this rule for decades.

SoilMyselfRotten's picture

Ooops, someone just dropped an anvil on PMs

sodbuster's picture

It's always an error when the criminals get caught.

max2205's picture

Shocked. ..not

And awe....jail them 

KnuckleDragger-X's picture

Error sounds so much better than cheating......

SickDollar's picture

We now live in a nation where doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the press destroys information, religion destroys morals, and our banks destroy the economy.

LawsofPhysics's picture

The truth is always treason in an empire of lies...

it's been this way since the dawn of time, adapt or die motherfucker.

KnuckleDragger-X's picture

Truth is a variable, your truth or mine makes a difference. Unfortunately, truth in the markets tend to be of the opium dream variety and with the same end result.....

schrodingers-cat's picture

No no no... The 'procedural error'  wasn't the leaking, it was the getting caught. 

doctor10's picture

so "let them eat cake"!!!?????


you'd think a continent that had already lived through one French Revolution could at least PRETEND to demonstrate a little sensitivity toward the peons now and again.

Government needs you to pay taxes's picture

Wont global government be fun?

They SHOULD DK all bond/fx trades made by the firms possessing insider info. for the period of time between the leak and when the rest of the world knew the info.

LawsofPhysics's picture

LOL!  bullshit, looks like "the club" wants to shed a few members...

tick tock motherfuckers...

madbraz's picture

a central banker meeting with hedge fund managers...and these guys never go to prison


max2205's picture

In the new market, you won't be able to trade 

The prices will be posted by the govt at noon and the close.


So sorray 

css1971's picture

Or put another way.

When there is going to be an announcement by a major institution like the ECB, you can expect the corrupt insiders to move the market in the direction the market will move at the time of the announcement.

You can tell the announcement in advance by watching market movements.

Fed-up with being Sick and Tired's picture

Show us then how it's done.   I have watched market announcements for 20 years and there is no correlation.

Tinky's picture

"procedural error"

Yeah, the error was proceeding too obviously with the corruption – a definite no-no.

pound the vix's picture

This is outrageous!  The general public should never have been told!!!

philosophers bone's picture

But "insider trading" only applies to information that peons receive about specific companies (ie. can't have the peons making $5K on a junior stock deal).  Meanwhile, tipping about central bank policy among the privileged so they can profit millions is fair game.  Long pitchforks.

pragmatic hobo's picture

well ... dilbert is wrong then?

Glass Seagull's picture



Draghi running out of ammo again, needs to crank up the information plants.


Greek default is contingent on euro strength...Draghi will let Greece go if the euro trades > $1.17 per usd.

Sach Mahoney's picture

From my perspective, the real "procedural errors" are first voting these corrupt fuckers into office and second not prosecuting them when caught and putting them in prision for a few years to rot.  What a sham being perpetrated on the sheeple of the world.  

Dumgoy's picture
Dumgoy (not verified) May 19, 2015 9:49 AM

ECB blames Succubus

disabledvet's picture

There is no SEC in Europe.


Yes...they have an "ECB" now...but there are no laws Governing its conduct.


TheUS Federal Reserve on the other hand was created by an Act of Congress.


We have a regulator that Governs it affairs (the SEC) and they are required by law to give regular testimony before Congress to determine their worth and value to Vox Populi.

In Europe "Greece has George Stephanopolus."


If they wish they can elect him "dictator for life"...but they will still be paying 30% interest " because he's richer than you."


Enjoy Estonia!


Rollo57's picture

The US Federal Reserve on the other hand was created by an Act of Congress.

US Fed created by about half a dozen members while the rest where at home for Christmas recess!

Joebloinvestor's picture

What a fucking joke.

Why are they revealing market moving information to a "select group" in the first place? (sarc off).

larz's picture

I am shocked, absolutely shocked!!!!!!!!!

mt paul's picture


then don't stand in the bath tub

with the toaster in your hands

samjam7's picture

With all their errors I have to give credit to the SNB for not talking before releasing the CHF. Obviously the bashing afterwards was enormous I wonder whether they would dare do the same thing again today! As for the ECB...well to be honest I'm not surprised at the behavior!

mt paul's picture



3 letter organizations