You are here
FX abuses persist even after $10 billion in fines, traders say
By Lananh Nguyen
Tuesday, May 29, 2018
Add Andy Maack of Vanguard Group Inc. to the list of a dozen or so executives who say that routine misbehavior in the $5.1 trillion-a-day foreign exchange market persists even after banks paid $10 billion in penalties and a trader was sent to prison.
It's been a year since regulators and industry participants published the FX Global Code, a set of voluntary guidelines aimed at improving standards in the unregulated, over-the-counter market that was rife with misdeeds. While the cleanup effort has helped make the business more transparent, it hasn't done enough to curb the most dubious practices, said Maack, Vanguard's global head of foreign-exchange trading.
... Dispatch continues below ...
Fisher Precious Metals is preparing and equipping
clients for the upcoming 'Everything Bubble'
Fisher Precious Metals, North America's top-rated bullion dealer, known for personal service and great pricing, has been helping Americans and Canadians protect their wealth with precious metals for more than a decade. Enjoying a five-star client rating across the internet with no complaints at the Better Business Bureau, the team at Fisher Precious Metals works hard to serve you.
We have helped thousands of clients in buying and selling bullion, arranging segregated and offshore storage, establishing precious metals IRAs, and obtaining certified precious metals appraisals. We provide security to our clients with our Bullion Authenticity Guarantee. We recommend that you read our article "How to Avoid Bullion Counterfeits":
As a family-owned business, we strive to help you assess your wealth-protection goals and overall investment objectives. From the new precious metals buyer to the seasoned bullion investor, we are here to help you with a no-pressure, confidential consultation. Rest assured that everyone in our firm owns physical precious metals and no one is compensated via commission -- period.
Fisher Precious Metals is your full-service precious metals investment partner for life. Please call us at 1-800-390-8576 or visit us here:
"I would have a tough time signing that document," Maack said in an interview. "It needs to go further."
Maack pointed to the controversial and widely used practices of last look and front-running as the most objectionable. A dozen industry participants agreed with him. Last look allows dealers to back out of losing trades. Front-running, sometimes called pre-hedging, is a practice in which traders make deals using advance knowledge of clients' private order information. The code allows both under certain circumstances.
"I'm uncomfortable with a code that makes last look an acceptable practice," Maack said. "I'm uncomfortable with a code that makes pre-hedging an acceptable practice." ...
... For the remainder of the report:
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Thursday-Sunday, November 1-4, 2018
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: