JPMorgan Apologizes for Criminal FX Market Manipulation

Not sure if anyone is interested in this or not, but the way I see it, if a name like JPM admits to blatant fraud, no broker should be considered 'trusted'.

Is it just me, or has there been an above-average incidence/clustering of "big names" being "exposed" for "misconduct" lately (Hollywood/News icons/Gov't/Banks). Guess I'm a bit of a conspiracy theorist.

Anyway this was published 2 days ago:
https://www.jpmorgan.com/pages/disclosures/fx_notice

Basically they confess to

1. Using hand signals to instruct their traders to misquote prices to clients over the telephone in order to personally profit.
2. Purposely neglecting to fill limit orders at the correct time, price, or volume (or at all) so as to personally profit.

speechless... to think they are one of the liquidity providers. So ECNs are probably affected too.

Using hand signals while taking the trade over the telephone?! I say, those hackers know no bounds whatsoever!
I should better add that back in the 19th century no such instances were possible and that only those newfangled inventions of recent times (the conversation-at-distance apparatus, so-called telephone) allowed for such ungodly practices.

Now imagine that same stuff implemented in automated market making algorithm and you are better informed about live trading than the demo traders thinking their EA will make them "reliably rich". (and instead of "2 pip markup", they'll do as much markup they can get away with and then your broker will add their own on top of that)

I realize you're being sarcastic, but I think most of the tech generation assumes the tech life is best cause it's all they know. Once you connect at an early age, you can think you're free to leave, but the mind is trapped. Wandering past indigenous sheep herders in the middle east (no kidding), I've honestly felt ashamed of myself, wished I'd taken a different path in life / been born somewhere else.

People say "power corrupts", but there's something so innocent about tech that kind of delays the realization...

They have apologized now, I feel much bitter

JPM is the 2nd liquidity provider in fx market 1st one is based in UK they have ability to move market with their trillion dollar investment

BTW wich Liquidity provider do you talk about.

What ECN brokers are affected?

So they got caught and apologised. Unfortunately, if they had not been caught, they'd still be continuing the racket. Infact, they probably will still continue in some form or another. Just like FXCM with countless fines for screwing clients, fines are a drop in the ocean compared to what they make ripping people off.

"Keep the client on the ferris wheel, and it goes, the park is open twenty-four, seven, three, six, five. Every decade, every Goddamn century. That's it."

I can't see any FX market manipulation here. Just cheating on clients. On retail level it's called slippage

This is nothing new. Below is what all those "liquidity providers" did during the CHF crisis and basically do in their everyday trading. Right now we are just getting confirmation for it:

Institutional traders and buyside members have seen an influx in banks using last look practises to overpower their clients. One trader who commented on the basis of anonymity said to Forex Magnates: “Quite simply Banks are having the biggest last look ever, typical of the market today, they enter a risk market and when it goes against them they fail to honour the trades.”

http://www.financemagnates.com/insti...mln-bloomberg/

This kind of market manipulations is what we used to get from the "bucketshops" at the retail level, I just can't believe this is going on at the institutional level too and is even worse at the institutional level due to the contract size.

It's really time to move fx market to central exchanges. I used to be against trading fx on central exchanges but given those unscrupulous and brazen market manipulations of these brokers, it seems that those brokers just can't keep their hands out of the cookie jar to run a clean, honest and fair trading operation so they need to be publicly monitored in an open market by everybody. One of the biggest advantage and supreme reason for trading fx OTC is for guarding the anonymity of the trading parties but looking at what JPMorgan did, the clients' identities is compromised anyway and what they were doing, their transaction size and etc. basically became public knowledge anyway and I am SURE JPMorgan is NOT the only one that's breaking anonymity of trading parities, then WHY still keeping the facade of trading "anonymously" over OTC at the expense of price transparency and market integrity?

I think this is a story which was discussed for many years and finally they have been caught. It is quite ugly that they have being doing this and who knows for how long. What do you think will be the affects about ECN brokers in regards with MM brokers if any ?

sorry they got caught that is all.