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Morgan Stanley FX Head Testifies Bank Restricts Barrier Trades
Morgan Stanley’s head of foreign exchange trading testified at the fraud trial of a hedge fund co-founder accused of manipulating the market to trigger a “barrier” option sold by the bank, saying it prohibits such conduct among its own traders. Samer Oweida took the stand Wednesday as a government witness against Glen Point Capital’s Neil Phillips, who is on trial in New York. Federal prosecutors claim Phillips directed $725 million in trades on Dec. 26, 2017, to drive up the value of the South African rand against the US dollar to a barrier rate at which a $20 million option would pay off. As Glen Point’s ... (full story)