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  • FX chatrooms show traders shared order, price details - sources

    From reuters.com

    British investigators are examining millions of electronic messages which include fresh evidence of possible collusion by a small group of top currency traders, sources say. The investigators have been handed chatroom transcripts showing senior dealers at the big banks that dominate the largely unregulated foreign exchange market routinely sharing intelligence on orders they were about to place for clients. The traders pooled order details from hedge funds and discussed the prices they should be offered, said the sources, who have seen some of the messages at the centre of an international probe into alleged ... (full story)

  • #1
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  • Jun 19, 2014 10:59am Jun 19, 2014 10:59am
....right! No more posting trades for me!
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #2
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  • Jun 19, 2014 11:00am Jun 19, 2014 11:00am
What's the difference if members of a FX forum share trading info or the big boys? Is the G-man going to start regulating how we talk about trades next????
I make it rain from the center of my Keytar
  • #3
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  • Jun 19, 2014 11:14am Jun 19, 2014 11:14am
any idea which chat rooms ?
  • #4
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  • Jun 19, 2014 11:15am Jun 19, 2014 11:15am
just some jealous guys perhaps
simple is better
  • #5
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  • Jun 19, 2014 12:06pm Jun 19, 2014 12:06pm
back to snail mail
the approximate present does not approximately determine the future
  • #6
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  • Jun 19, 2014 12:59pm Jun 19, 2014 12:59pm
Quoting PipsExpress
back to snail mail
....Noo! That is hard evidence...
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #7
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  • Jun 19, 2014 1:02pm Jun 19, 2014 1:02pm
  •  Trader#BC50
  • | Status: Unregistered Trader
load of hogwash, I know of a couple of online trading rooms where members (who include a couple of brokers) make trade suggestions and also post their trades with s/l and t/p levels. let's see the FBI, the CIA, or the SEC do anything about it. none of the members including the brokers are able to manipulate the markets. so one takes their advice at your own risk. problem is that there are too many spooks on the internet.
  • #8
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  • Jun 19, 2014 5:57pm Jun 19, 2014 5:57pm
So Steve Mauro was right
  • #9
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  • Jun 19, 2014 8:05pm Jun 19, 2014 8:05pm
  •  Trader#08BC
  • | Status: Unregistered Trader
they are not sharing the same you or me would be sharing. If you actually have read the article which you didnt read, obviously, it says that they front-run client orders, sometimes moving the market 30 pips for 10 million worth of currency. they would buy for themselfs, share the clients trades with others and the details of it and then execute the client trades.
Obviously most people here are more sofisticated than this hedge-funds, we see the quotes that the brokers are dealing to us, these headge-funds didnt even watched the price quotes.
  • #10
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  • Jun 19, 2014 9:29pm Jun 19, 2014 9:29pm
Moral of the story don't use a middle man, they will take their cut. Sounds like how most businesses work, buy something cheap add a margin and then on sell it.
  • #11
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  • Jun 20, 2014 5:56am Jun 20, 2014 5:56am
  •  Trader#FE98
  • | Status: Unregistered Trader
Anyone have an idea what role, if any, PC, EV, VC (in addition to markup) have in the FX probe?
  • #12
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  • Jun 20, 2014 8:09am Jun 20, 2014 8:09am
Based on those comments in the report about changing the spread between different clients, I don't think they've done anything wrong there? I'm not a market maker - but my understanding is that the spread is whatever you quote it at - if the client doesn't want to pay then they call another broker.

Front running institutional orders is pretty bad - but something that is going to happen if your business facilitates big orders and also makes the market in them. Supposed to be a 'Chinese Wall' but in practicality - does this work? Of course not.

Either way - I'm not sure how much impact this has on retail traders. I'm going to say none. If there is real order interest in a market - It doesn't matter who the broker is - they wont have the ability to change the direction of a currency over the longer term.
  • #13
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  • Jun 20, 2014 8:43am Jun 20, 2014 8:43am
  •  Trader#F5E4
  • | Status: Unregistered Trader
Anything that is shared will be visible in the charts. Of course you must have the ability to read the charts...
  • #14
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  • Jun 20, 2014 4:44pm Jun 20, 2014 4:44pm
  •  Trader#544A
  • | Status: Unregistered Trader
Sheer bafoonery . The spread is the amount
Of risk traders are willing to take . If hedge funds
Are abusing liquidity , sounds more than reasonable
To want to take less risk . More ignorant reporting in fx .
  • New Comment
  •  Trader#FC18
  • | Status: Unregistered Trader
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  • Story Stats
  • Posted: Jun 19, 2014 10:43am
  • Submitted by:
     Newsstand
    Category: Forex Industry News
    Comments: 14  /  Views: 5,103