American Authorities Are Having a Look at Banks'"Last Look"
- The U.S Justice Department and the Securities and Exchange Commission are investigating Barclays Plc over the procedure of last look allowing the bank to requote orders at the expense of its clients.
Barclays Plc Headquarters At Canary Wharf (Photo: Bloomberg)
The US Justice Department, working in collaboration with the Securities and Exchange Commission (SEC), have started a probe into last look - a procedure used by the major global FX banks to renege on losing trades at the last moment. A broader ongoing investigation of the 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 market apparently piqued their interest.
Regulators around the world, including the American ones, have already been investigating the practices of the banks in the FX market for quite a while. Until now, however, the investigations have only been known to focus on a conspiracy to manipulate FX rates by bank traders to the detriment of their clients.
In fact, just earlier on Tuesday, Barclays Plc (LSE: BARC) had announced in its earnings report it set aside another £750 million for settlement charges relating to foreign exchange-fixing-related settlement charges, bringing the provisions to a total of £1.25 billion.
Barclays CEO Anthony Jenkins said about the manipulation allegations: “We remain focused on addressing outstanding conduct issues, including those relating to Foreign Exchange trading... resolving these issues is an important part of our plan for Barclays and, although it may be difficult, I expect that we will make significant progress in this area in 2015.” But now it seems he might have even more troubles to worry about in the FX field this year.
It has been revealed that Justice Department prosecutors and SEC officials have requested information from Barclays relating to its electronic-Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, specifically about the program that allows the bank's traders to have a “last look” at an order before executing it, according to Bloomberg. The SEC reportedly is investigating whether the procedure violates American disclosure laws.
Earlier this month ACI, a non-profit association of markets professionals representing institutional bodies as exchanges, hedge funds and central banks, has also addressed the questionable procedure. "[Last look] should only be used in order to mitigate technological anomalies and latencies when showing firm prices to customers,” reads an updated Code of Conduct by the association.
Barclays Plc Headquarters At Canary Wharf (Photo: Bloomberg)
The US Justice Department, working in collaboration with the Securities and Exchange Commission (SEC), have started a probe into last look - a procedure used by the major global FX banks to renege on losing trades at the last moment. A broader ongoing investigation of the 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 market apparently piqued their interest.
Regulators around the world, including the American ones, have already been investigating the practices of the banks in the FX market for quite a while. Until now, however, the investigations have only been known to focus on a conspiracy to manipulate FX rates by bank traders to the detriment of their clients.
In fact, just earlier on Tuesday, Barclays Plc (LSE: BARC) had announced in its earnings report it set aside another £750 million for settlement charges relating to foreign exchange-fixing-related settlement charges, bringing the provisions to a total of £1.25 billion.
Barclays CEO Anthony Jenkins said about the manipulation allegations: “We remain focused on addressing outstanding conduct issues, including those relating to Foreign Exchange trading... resolving these issues is an important part of our plan for Barclays and, although it may be difficult, I expect that we will make significant progress in this area in 2015.” But now it seems he might have even more troubles to worry about in the FX field this year.
It has been revealed that Justice Department prosecutors and SEC officials have requested information from Barclays relating to its electronic-Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, specifically about the program that allows the bank's traders to have a “last look” at an order before executing it, according to Bloomberg. The SEC reportedly is investigating whether the procedure violates American disclosure laws.
Earlier this month ACI, a non-profit association of markets professionals representing institutional bodies as exchanges, hedge funds and central banks, has also addressed the questionable procedure. "[Last look] should only be used in order to mitigate technological anomalies and latencies when showing firm prices to customers,” reads an updated Code of Conduct by the association.