Is forex market controlled by someone? - page 27
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The Plunge Protection Team Is Opening An HFT-Focused Chicago Office
For several days we had heard a persistent rumor, that one of the most famous members of the New York Fed's Markets Group, also known as the Plunge Protection Team, Kevin Henry was moving to the HFT capital of the world, Chicago. We refused to believe it because, let's face it, when the trading desk on the 9th floor of Liberty 33 needs to get its hands dirty in stocks, it simply delegates said task using just a little more than arms length negotiation, with the world's most levered HFT hedge fund: Ken Griffin's Citadel. Why change the status quo.
And then, it turned out to be true because as the Chicago Fed announced just a few short days ago:
So instead of interacting with the HFT momentum ignition algos using the microwave line of sight towers from NY all the way to Chicago, the NY Fed has decided it needs to be present on location in the windy city to buy up every ES contract and reverse the selling momentum when the day of reckoning finally hits.
But what does that mean for Citadel? Well, considering Ken Griffin has more pressing issues on his mind, we can understand why Bill Dudley is suddenly concerned the NY Fed's orders may get less than optimal "best practice" execution, and thus the need to finally get the Fed's hands wet. After all, by now everyone knows the Fed is directly and indirectly manipulating and intervening in markets on a daily basis, so why not.
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This is the most ridiculous excuse for HFT using from FED I have ever seen
Like in kindergarten : "We are going to heat everybody in the head to prevent others to hit everybody in the head".
U.S., UK regulators want quick Deutsche Bank Libor settlement: reports
U.S. and UK regulators are pushing to settle the Deutsche Bank AG Libor case quickly and hope to extract major penalties, although a conclusion is unlikely before 2015, The Wall Street Journal reported, citing unidentified sources.
U.S. prosecutors are also discussing plans to force Deutsche Bank to plead guilty to attempting to manipulate Libor, the interest rate benchmark that underpins trillions of dollars in mortgages, derivatives and consumer credit, the New York Times reported separately, citing legal sources.
Officials have not made a final decision, the New York Times added.
Deutsche Bank is two years into a turnaround plan launched in 2012 that has seen costs fall and operating profit leap, but the threat of further penalties from alleged misconduct has cast a shadow over the share price and management's success claims.
The bank's own investigation has not uncovered any evidence of wrongdoing by senior executives, but did find that "certain employees, acting on their own initiative, engaged in conduct that falls short of the bank's standards," the bank said in a statement.
The bank originally hoped to clear the decks of legal issues in 2014 but has guided recently that 2015 will likely be the year instead when the majority of investigations are concluded.
Regulators are hoping to convince the bank to pay well into the hundreds of millions of dollars, the Journal said.
The bank is being investigated by the U.S. Commodity Futures Trading Commission and Justice Department and the UK Financial Conduct Authority, the newspaper added.
The bank has set aside 7.8 billion euros ($9.8 billion) in the past two and a half years for fines and settlements and expects to face another 3 billion in costs in 2014.
The litigation reserves are weighing on third-quarter earnings, which benefited from strong retail and investment banking activities, sources familiar with the matter said.
The bank faces a number of investigations that touch on the U.S. mortgage market, foreign exchange and high-frequency trading.
Banks such as BNP Paribas SA and Credit Suisse Group AG paid heavy fines earlier this year for violating the U.S. sanctions.
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Report: Justice, Holder eye new charges against major banks
Roughly a dozen major banks are reportedly facing fresh probes from the Justice Department, and individual traders could face charges.
The New York Times reported Tuesday that government investigators were examining a “dozen or so banks,” including major Wall Street institutions like JPMorgan Chase and Citigroup, over allegations that traders manipulated currency exchanges and benchmark interest rates for their own profit.
The fresh push comes as Attorney General Eric Holder prepares to step down. Holder has frequently been criticized by some lawmakers for taking too soft and slow an approach to punishing financial wrongdoers, particularly after the financial crisis.
According to the Times, the Justice Department is looking to obtain guilty pleas from several banks, and also to indict several traders for their roles in the manipulation. However, it does not appear that top bank executives, long a target for Wall Street critics in Congress, are under the microscope in these investigations. The Times based its report on conversations with “more than a dozen” lawyers speaking on the condition of anonymity.
Several banks have already struck settlements with government regulators over charges that employees manipulated rates used across the market to pad their own profits. In 2012, the Swiss bank UBS agreed to pay U.S. and British regulators $1.5 billion to settle charges, and Barclays and RBS, among others, have also entered into similar settlements.
However, those cases could be reopened under the current probe, if government investigators argue fresh findings of manipulation violate the previously struck settlements. Other banks, such as Deutsche Bank, remain under investigation for potential manipulation.
While Holder critics have argued the Justice Department has been too soft on Wall Street under his watch, federal prosecutors have managed to impose some penalties on a host of financial institutions. Several large banks have agreed to civil settlements where they pay penalties running into the billions of dollars, and the Justice Department has obtained a handful of guilty pleas from banks for helping evade sanctions as well as taxes.
And even as those settlements have been announced, Justice Department officials have emphasized that criminal probes remain ongoing.
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U.S. Said to Ready Charges Against Banks in Forex Rigging
U.S. prosecutors are pressing to bring charges against a bank for currency-rate rigging by the end of the year, and actions against individuals will probably follow in 2015, according to people familiar with the probe.
The Justice Department may seek guilty pleas from several firms, including at least one in the U.S., said one of the people, asking not to be named because details of the investigation aren’t public. While federal prosecutors have wrested convictions from foreign banks this year for wrongdoing, they’ve yet to win a guilty plea from a U.S. lender in that push, and they’re preparing for strong resistance if they attempt to do so.
Justice Department officials have vowed to hold more institutions and individuals accountable for criminal conduct amid public frustration over the lack of prosecutions against top Wall Street executives for the worst financial crisis since the Great Depression.
Starting currency-rigging prosecutions this year would help the Justice Department keep pace with regulators. The U.K. Financial Conduct Authority, the U.S. Federal Reserve, and the Office of the Comptroller of the Currency are already in settlement talks with several banks with a goal of reaching some agreements next month, people familiar with the cases have said.
U.K. Charges
The U.S. criminal investigation has moved quicker than U.K. prosecutors. The Serious Fraud Office opened an investigation in July and will announce any charges next year at the earliest, according to David Green, the London agency’s director.
Attorney General Eric Holder, in his final speech about financial crime before announcing plans last month to step down, said the currency probe was advancing quickly thanks to undercover cooperators and would probably result in charges against bankers in the coming months.
Investigators are looking into allegations that traders shared data about orders with people at other firms using instant-message groups with names such as “The Cartel” and “The Bandits’ Club.”
One focus is whether dealers sought to move the WM/Reuters benchmark rate in their favor by pushing through trades before and during the 60-second windows when the benchmark is set at 4 p.m. in London each day, a process known in the industry as “banging the close.” About a dozen banks are under investigation in the probe. More than 25 traders have been fired, suspended or put on leave since the allegations emerged last year.
UBS Immunity
UBS AG (UBSN), Switzerland’s largest bank, has won immunity from the Justice Department’s antitrust division in exchange for evidence of misconduct, one of the people said. That doesn’t protect the Zurich-based lender from scrutiny from the department’s fraud section, the person said. The bank was also the first to approach the European Commission in its antitrust inquiry in a bid for leniency there.
UBS received the same immunity from Europe in a separate investigation into the rigging of interest rates in 2011.
In that probe, which is continuing, prosecutors are seeking to conclude their case against Deutsche Bank AG. (DBK) They have yet to decide whether to seek a guilty plea against a unit of the bank, according to two people familiar with the investigation.
Prosecutors examining whether Frankfurt-based Deutsche Bank rigged the London interbank offered rate, known as Libor, have started coordinating with U.S. regulators to limit any impact on the firm’s business in the event they do pursue a guilty plea from the company or a subsidiary, one of the people said. Authorities haven’t made a final decision, according to the person.
Peter Carr, a spokesman for the Justice Department, and Karina Byrne, a spokeswoman for UBS, declined to comment.
U.S. Prosecutions
Deutsche Bank “is cooperating in the various regulatory investigations and conducting its own ongoing review into the interbank-offered-rates matters,” said Renee Calabro, a company spokeswoman. In that examination, the firm has found “that certain employees, acting on their own initiative, engaged in conduct that falls short of the bank’s standards, and action has been taken accordingly.”
The developments in prosecuting banks in the currency and interest-rate probes were reported yesterday by the New York Times.
Earlier this year, the Justice Department secured guilty pleas -- once viewed as a death penalty for a bank -- from Credit Suisse Group AG (CSGN)’s main bank subsidiary for helping Americans cheat on taxes, and from BNP Paribas SA (BNP) for handling banned transactions involving Sudan, Iran and Cuba.
The U.S. Libor probe has produced settlements with five banks including UBS, Barclays Plc (BARC) and the Royal Bank of Scotland Group Plc and charges against at least nine individuals. The cooperation agreements with those banks gave the government a windfall of information for its currency manipulation investigation.
Evidence produced as part of those agreements also is being used in a criminal probe of alleged manipulation of ISDAfix, a benchmark used to set rates for trillions of dollars of financial products, according to a person with knowledge of the matter.
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this is a biggest market. it is not as stock market someone can control a stock.no body can control economic of country
this is a biggest market. it is not as stock market someone can control a stock.no body can control economic of country
Economy of a country is controlled all the time (that is the basis of any government existing). Controlling forex is much easier than it looks like : see that yesterday it was only a talk that FED will not raise the rates and see what happened. And it was just talking. Forex is 100% controlled by CBs
Rigging is done by the banks
Actually, Forex market is directly depend on the World economic state. Therefore, we traders need to know the fundamental news. On the other hand, Forex market follows technical analysis. This is way; we trades need huge knowledge about the technical and the fundamental analysis. By the way, I always depend on my trading broker GCI Financial to get most reliable technical analysis with quick fundamental data. I never open my trade without any analysis.
That is probably a misunderstanding : forex market (and any other market) is NOT following technical analysis. It is the other way around. Do not expect that the market will turn just because your indicators are telling that it should
Deutsche clampdown on bad behavior prompts exodus of traders: FT
Senior bankers at Deutsche Bank AG (DE:DBKGn) are leaving the bank amid a crackdown on bad behavior by traders, as the bank undergoes a probe by global regulators into allegations of attempts to rig markets, the Financial Times reported on Sunday.
The bank is planning to stop rewarding the best earners on the trading floor with bonuses or promotions if they are "disruptive" or are not seen as team players, the newspaper said.
These bankers are drifting away from traditional banking to less regulated areas like hedge fund management and boutique firms, the newspaper said.
Deutsche Bank has been facing a set of investigations by regulators involving allegations that benchmark interest rates were manipulated and that some investors were unfairly favored in off-market trading venues known as dark pools.
The newspaper reported that other banks like Barclays (L:BARC) are also in the process of introducing similar measures, after its bonus culture was cited as one of the factors that led to the Libor manipulation rate scandal.
Barclays is introducing a company-wide bonus policy this year for bankers who stick to the British bank's values and behavioral guidelines.
Barclays, which is also being investigated over the Libor case, recently agreed to pay $20 million to settle a U.S class action suit.
The newspaper said that senior bankers are now operating in a much tighter environment, with an emphasis on following non-binding ethical codes along with the rules.
Regulators have sued around 16 banks, including Barclays and UBS, for rigging the Libor rate.
Deutsche Bank declined to comment further late Sunday night.
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Exactly forex is controlled by market maker such as the FED organisation and it influenced the market volatile..
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