Deutsche Bank Sails Safely into Port as Another FX Trader Walks the Plank
- As the FX market attracts increasing amounts of regulatory scrutiny due to manipulation allegations, a Deutsche FX trader is dismissed for misreporting currency trades worth over $5 million.
Deutsche Bank, the largest investment bank in Germany, and one of the top five for FX interbank dealing volume, has admitted that a senior trader working at the bank’s Australian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term desk in Sydney, Australia, has been dismissed for misrepresenting and misreporting foreign exchange transactions made by Deutsche.
Deutsche Bank confirmed that former currency trader, Andy Donaldson, was first suspended and then fired in June of this year after the bank uncovered irregularities in the way he was valuing his currency trades. Fairfax Media has reported that the cost to Deutsche Bank is in the region of $5 million. The investment bank declines to comment on the nature and details of the misreported transactions.
Earlier this year in August, Deutsche Bank was fined £5 million GBP for misreporting CFD transactions for almost 5 years between November 2007 and April 2013. Mr. Kai Lew, a Director of Institutional FX at Deutsche, was suspended as part of a manipulation investigation in April 2014.
"The issue is internal only and did not have an external impact. The sum involved was not material to the bank,” said a spokesman for Deutsche Bank.
The Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Authorities (APRA) are working with Deutsche to investigate the matter.
This latest dismissal of a senior trader for foreign exchange related irregularities comes at the worst time for Deutsche Bank, with a global regulatory inquiry ongoing into FX market malpractices such as market manipulation and market abuse. Although regulatory agencies such as ASIC, FCA, NFA, FINMA and the CFTC have declined to disclose the details of their inquiries, some form of counter-reaction from regulatory authorities is expected in the near future.
Deutsche Bank, the largest investment bank in Germany, and one of the top five for FX interbank dealing volume, has admitted that a senior trader working at the bank’s Australian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term desk in Sydney, Australia, has been dismissed for misrepresenting and misreporting foreign exchange transactions made by Deutsche.
Deutsche Bank confirmed that former currency trader, Andy Donaldson, was first suspended and then fired in June of this year after the bank uncovered irregularities in the way he was valuing his currency trades. Fairfax Media has reported that the cost to Deutsche Bank is in the region of $5 million. The investment bank declines to comment on the nature and details of the misreported transactions.
Earlier this year in August, Deutsche Bank was fined £5 million GBP for misreporting CFD transactions for almost 5 years between November 2007 and April 2013. Mr. Kai Lew, a Director of Institutional FX at Deutsche, was suspended as part of a manipulation investigation in April 2014.
"The issue is internal only and did not have an external impact. The sum involved was not material to the bank,” said a spokesman for Deutsche Bank.
The Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Authorities (APRA) are working with Deutsche to investigate the matter.
This latest dismissal of a senior trader for foreign exchange related irregularities comes at the worst time for Deutsche Bank, with a global regulatory inquiry ongoing into FX market malpractices such as market manipulation and market abuse. Although regulatory agencies such as ASIC, FCA, NFA, FINMA and the CFTC have declined to disclose the details of their inquiries, some form of counter-reaction from regulatory authorities is expected in the near future.