Former Barclays FX Trader Acquitted of Market Manipulation
- A US judge determined that the options markets aren’t government by clearly defined rules of trust.
A former senior foreign exchange (forex) trader at Barclays Plc, who was accused of criminal market manipulation, was acquitted by a United States judge on Monday, with the charges tossed before the case could go to a jury.
In a rare instance of a case being shut down so quickly, the acquittal of Robert Bogucki, the former head of Barclay’s FX trading desk in New York, was given by U.S. District Judge Charles Breyer in San Francisco.
The case was tossed as the judge determined that the US options markets aren’t government by clearly defined rules of trust, but are instead more like a poker game in “the Wild West,” a move which has set back federal efforts to hold senior bankers and traders accountable for suspected market misconduct.
Specifically, Bogucki, whose trial commenced on February 21st, was charged with “front-running” a transaction made in 2011, which involved the sale of £6 billion (around $8 billion) worth of cable options that were linked to Hewlett-Packard Co’s purchase of Autonomy Corp., a UK software company.
The former Barclays FX trader was accused of attempting to push down the options’ price, which allowed Barclays to profit at HP’s expense, prosecutors alleged. Furthermore, an indictment quoted Bogucki of warning a trader to not let “some loose-lipped market monger” tell HP what they were doing.
Robert Bogucki Did Not Owe HP a Duty of Trust, Judge Finds
However, Breyer stated that a reasonable jury would not be able to find that Bogucki owed HP a duty of trust and confidence and that his actions were rather in line with industry practices, along with other factors, which meant that an acquittal was necessary.
“The government has pursued a criminal prosecution on the basis of conduct that violated no clear rule or 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, was not prohibited by the agreements between the parties, and indeed was consistent with the parties’ understanding of the arms-length relationship in which they operated,” Breyer wrote.
“The court cannot permit this case to go to the jury on such a basis,” he added.
Another Setback for US Prosecutors
The events on Monday were not the first setback for US prosecutors. As Finance Magnates reported, three former 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 traders based in London were accused of rigging FX rates. However, a Manhatten federal jury found them not guilty in October.
A former senior foreign exchange (forex) trader at Barclays Plc, who was accused of criminal market manipulation, was acquitted by a United States judge on Monday, with the charges tossed before the case could go to a jury.
In a rare instance of a case being shut down so quickly, the acquittal of Robert Bogucki, the former head of Barclay’s FX trading desk in New York, was given by U.S. District Judge Charles Breyer in San Francisco.
The case was tossed as the judge determined that the US options markets aren’t government by clearly defined rules of trust, but are instead more like a poker game in “the Wild West,” a move which has set back federal efforts to hold senior bankers and traders accountable for suspected market misconduct.
Specifically, Bogucki, whose trial commenced on February 21st, was charged with “front-running” a transaction made in 2011, which involved the sale of £6 billion (around $8 billion) worth of cable options that were linked to Hewlett-Packard Co’s purchase of Autonomy Corp., a UK software company.
The former Barclays FX trader was accused of attempting to push down the options’ price, which allowed Barclays to profit at HP’s expense, prosecutors alleged. Furthermore, an indictment quoted Bogucki of warning a trader to not let “some loose-lipped market monger” tell HP what they were doing.
Robert Bogucki Did Not Owe HP a Duty of Trust, Judge Finds
However, Breyer stated that a reasonable jury would not be able to find that Bogucki owed HP a duty of trust and confidence and that his actions were rather in line with industry practices, along with other factors, which meant that an acquittal was necessary.
“The government has pursued a criminal prosecution on the basis of conduct that violated no clear rule or 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, was not prohibited by the agreements between the parties, and indeed was consistent with the parties’ understanding of the arms-length relationship in which they operated,” Breyer wrote.
“The court cannot permit this case to go to the jury on such a basis,” he added.
Another Setback for US Prosecutors
The events on Monday were not the first setback for US prosecutors. As Finance Magnates reported, three former 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 traders based in London were accused of rigging FX rates. However, a Manhatten federal jury found them not guilty in October.