"Currency dealers in London gave information about client orders to day traders who then made bets on their behalf, sidestepping restrictions on personal trading, three people with knowledge of the practice said"
"Bank employees used their mobile phones and instant-messages to transmit details of impending orders to individuals working from rented trading desks in offices on the outskirts of the U.K. capital, according to three traders who said they had witnessed the practice over a period of years. The day traders then made bets on the direction of currencies and any profit was later divvied up in cash, said two of the people, who asked not to be identified because the agreements are private."
Reported on Bloomberg on Nov 22, 2013 at http://www.bloomberg.com/news/2013-11-19/fx-dealers-said-to-use-day-traders-to-make-personal-bets.html#disqus_thread
It's not surprising to me that such hanky panky sort of trading happens all over the world to those who have privilege information, these FX dealers are just small flies. The big boys are those well connected to certain corrupted government officials, families, friends and cronies of many listed companies.
It's so common to see stock price actions well ahead of impending news release. Who are these first movers? They are definitely the insiders who have news leak to them in advance. It will take tremendous amount of time and hard work for the regulators to catch them, so the small fishes are able to swim away scot free.
"Bank employees used their mobile phones and instant-messages to transmit details of impending orders to individuals working from rented trading desks in offices on the outskirts of the U.K. capital, according to three traders who said they had witnessed the practice over a period of years. The day traders then made bets on the direction of currencies and any profit was later divvied up in cash, said two of the people, who asked not to be identified because the agreements are private."
Reported on Bloomberg on Nov 22, 2013 at http://www.bloomberg.com/news/2013-11-19/fx-dealers-said-to-use-day-traders-to-make-personal-bets.html#disqus_thread
It's not surprising to me that such hanky panky sort of trading happens all over the world to those who have privilege information, these FX dealers are just small flies. The big boys are those well connected to certain corrupted government officials, families, friends and cronies of many listed companies.
It's so common to see stock price actions well ahead of impending news release. Who are these first movers? They are definitely the insiders who have news leak to them in advance. It will take tremendous amount of time and hard work for the regulators to catch them, so the small fishes are able to swim away scot free.
