Christopher Cummins, a former FX-trader for Citigroup on Thursday, 12 January 2017 was plead guilty in the U.S. Department of Justice’s long-running investigation into foreign currency market manipulation.
“The exchange rate manipulation pursued by the charged CEEMEA FX dealers and their co-conspirators, like any other form of price fixing, was intended to stymie free competition that promotes market integrity and fair pricing,” Deputy Assistant Attorney General Brent Snyder of the DOJ’s antitrust division said in a statement.
On Tuesday, the U.S. Department of Justice charged three former FX-traders for Barclays, Citigroup and two other large banks as part of its probe into foreign currency market manipulation.
The former executives allegedly coordinated their trading with each other in an online chat room while working for affiliates of those banks, JPMorgan Chase & Co. and the Royal Bank of Scotland Group PLC. The four banks agreed last year to pay about $2.5 billion in U.S. criminal fines as a result of the investigation.
The Financial Times reports, that two former leading FX-traders were arrested because of their involvement in the Forex Manipulation Scandal. They are accused of making $8m in profits and fees by “front running” a client’s $3.5bn foreign exchange trade.
Mark Johnson (UK) and Stuart Scott (UK) were heads of global and EU forex currency trading departments for HSBC.
Nine Banks have agreed to pay in total $ 2 billion in settlements to US investors over claims they rigged foreign exchange rates. Traders used their banks' closed chat rooms, instant messaging systems and emails to manipulate prices.
Using the kind of colourful language typical in the spate of market rigging cases involving the banks, traders assumed names such as "The Cartel," "The Bandits' Club," and "The Mafia" to communicate and place confidential orders.
Five major Banks agreed to plead guilty to conspiring to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market and the banks have agreed to pay criminal fines in sum more than $2.5 billion.
According to plea agreements, between December 2007 and January 2013, euro-dollar traders at Citicorp, JPMorgan, Barclays and RBS – self-described members of “The Cartel” – used an exclusive electronic chat room and coded language to manipulate benchmark exchange rates.
The foreign exchange market, with a daily average volume turnover of $ 5.3 trillion, is one of the most important and liquid financial markets in the world. In November 2014 and May 2015, several major banks were sentenced to pay record fines by US, UK and Swiss regulators for failing to take reasonable care to organise and control their affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading.