Fired Barclays FX Trader Says He Was 'Scapegoat' for 'Last Look' Abuse
- In 2015, the NY regulator fined Barclays $150 million and ordered it to sack Fotheringhame.
A former foreign exchange trader fired by Barclays Plc said that he was a scapegoat and that the British multinational bank had dishonestly contrived his dismissal to divert attention from its own failings.
Discover credible partners and premium clients at China’s leading finance event!
David Fotheringhame, a former head of automated trading for electronic fixed income, currencies and commodities, is claiming unfair dismissal in a London court after being sacked by Barclays in 2015 for misconduct relating to the controversial practice of 'last look'.
According to a Bloomberg report, the bank’s lawyer said in court that Fotheringhame’s job was to “look at the data, identify those clients who could be regarded as toxic because of their order flow and set last look accordingly”. The former trader replied that “the system automatically will be gentle to gentle clients.”
He added that the order was unfair but officials signed it “on pain of losing their banking license and hence having to close their U.S. businesses.”
In 2015, the NY regulator fined Barclays $150 million and ordered it to sack Fotheringhame for using its automated 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 trading system to reject client orders that would have been unprofitable for the bank.
This order against the former head of automated electronic Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term was part of a long-running effort to cover up the abuse of the last look policy to benefit his bank at the expense of its clients. According to the court filing, Fotheringhame told staffers to “just obfuscate and stonewall when the sales teams asked questions.”
The lawsuit provides a glimpse into the banks’ use of one of FX market’s most common, and potentially abusive, practices. The practice allows market makers get a final opportunity lasting a few milliseconds to reject an order after a client commits to a trade at a quoted price.
A former foreign exchange trader fired by Barclays Plc said that he was a scapegoat and that the British multinational bank had dishonestly contrived his dismissal to divert attention from its own failings.
Discover credible partners and premium clients at China’s leading finance event!
David Fotheringhame, a former head of automated trading for electronic fixed income, currencies and commodities, is claiming unfair dismissal in a London court after being sacked by Barclays in 2015 for misconduct relating to the controversial practice of 'last look'.
According to a Bloomberg report, the bank’s lawyer said in court that Fotheringhame’s job was to “look at the data, identify those clients who could be regarded as toxic because of their order flow and set last look accordingly”. The former trader replied that “the system automatically will be gentle to gentle clients.”
He added that the order was unfair but officials signed it “on pain of losing their banking license and hence having to close their U.S. businesses.”
In 2015, the NY regulator fined Barclays $150 million and ordered it to sack Fotheringhame for using its automated 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 trading system to reject client orders that would have been unprofitable for the bank.
This order against the former head of automated electronic Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term was part of a long-running effort to cover up the abuse of the last look policy to benefit his bank at the expense of its clients. According to the court filing, Fotheringhame told staffers to “just obfuscate and stonewall when the sales teams asked questions.”
The lawsuit provides a glimpse into the banks’ use of one of FX market’s most common, and potentially abusive, practices. The practice allows market makers get a final opportunity lasting a few milliseconds to reject an order after a client commits to a trade at a quoted price.