What is interesting about today's announcement from the FCA is the part about stop hunting. Yes, we know it exists. That is not the surprising part, but rather that the FCA treats it as illegal activity, same as rigging the WMR fix. I consider this normal behavior as the bank dealers is party a prop trader as well. He has to take sometimes a position and if why not use the information he has through his order book? The stupid thing they did was to share all the info in the chatrooms and boast with it, otherwise the FCA couldn't even charge them with anything. Aside from that, it is fairly easy to guess where larger stop clusters are resting, even without any insider information.
What do you guys think about this?
(1) Attempts to manipulate the WMR and the ECB fix rates in
collusion with traders at other firms, for Citi’s own benefit and
to the potential detriment of certain of its clients and/or other
market participants;
(2) Attempts to trigger clients’ stop loss orders for Citi’s own
benefit and to the potential detriment of those clients and/or
other market participants; and
(3) Inappropriate sharing of confidential information with traders
at other firms, including specific client identities and, as part
of (1) and (2) above, information about clients’ orders
http://fca.org.uk/news/fca-fines-fiv...or-fx-failings
What do you guys think about this?
(1) Attempts to manipulate the WMR and the ECB fix rates in
collusion with traders at other firms, for Citi’s own benefit and
to the potential detriment of certain of its clients and/or other
market participants;
(2) Attempts to trigger clients’ stop loss orders for Citi’s own
benefit and to the potential detriment of those clients and/or
other market participants; and
(3) Inappropriate sharing of confidential information with traders
at other firms, including specific client identities and, as part
of (1) and (2) above, information about clients’ orders
http://fca.org.uk/news/fca-fines-fiv...or-fx-failings
