Mar
6
2014
 The
ongoing investigations into foreign
exchange rate manipulation continue with the latest update surfacing
regarding France’s largest bank BNP Paribas – which was said to have
suspended Bob De Groot – its global head of spot trading for its Forex
business, as reported by the Wall Street Journal citing unnamed sources.
Forex Magnates was unable to reach a company spokesperson around time of
publication and other news outlets said that BNP Paribas had declined to
comment on the news.
According to a LinkedIn profile for De Groot, he’s described as
previously working with Citi Bank for nearly 16 years, holding the role of
Managing Director before joining BNP Paribas, as per the public profile.
Many sides of the investigations have revolved around the same central
themes including alleged online chat room
collusion to manipulate forex rates in favour of the conspiring
parties, according to the allegations that have resulted from these
findings, with the first mention of it announced by Switzerland’s
financial market regulator last October.
Senior FX Positions Too Hot To Hold, Amid Forex Investigations
Earlier today Forex
Magnates reported that Goldman Sachs has scooped up ex-JP Morgan’s Global
Head of Foreign Exchange, Kayhan Mirza, naming him as partner and to
the helm of the same [descriptive] role within its Investment Banking
business, to be Global Head of Foreign Exchange at Goldman Sachs.
While other firms are firing, others are hiring, including with several
suspensions and people who have been said to be let go. Of course – a
normal degree of such
events occur naturally in a healthy functioning marketplace, however,
the string of related forex moves, have been tied directly to theongoing FX probe (not the above mention hire by
Goldman Sachs although it too had been previously drawn into the
investigations).
As a result of this, senior FX positions within the institutional space
have become a hot potato -at least for a few, and too hot to hold – as
firms scrutinize and review internal operations amid the investigations.
BNP Paribas employs some 14,000 people, as described on its corporate
website, and with around 3,000 of its staff in the U.S. De Groot was said
to be based out of London, as
reported by several media outlets following the news, and the bank’s
foreign exchange business is described on its website as offered via its
Corporate & Investment Banking (CIB) business division.
BNP Paribas’ CIB division – in terms of its FX segment – has more than
400 Forex specialists that cover a broad offering of FX related products,
including the firm’s Cortex platform, as well as spot foreign exchange
that De Groot was described as having being in charge of.
The company offers over 100 currency pairs to trade and also has a sizable Prime brokerage business, a key product of
interest to retail brokers and other non-retail participants on both the
buy-side and sell-side of the FX market.
Update on Forex Class Action Related to FX Probe
A number of forex dealers that revealed they were under investigation
regarding foreign exchange related probes, were subsequently named by
complainants as part of a number of lawsuit applications that had recently
joined into a class-action.
The lead counsel appointed to that class was Scott+Scott LLP,
as Forex Magnates originally reported of the courts selection for
it to that position, and then again when Quinn Emanuel – another counsel among the
classes plaintiffs – had challenged the court to appoint it as the lead on
the basis that its client – the city of Philadelphia – had the largest
interest in the case. A NY court just days ago rebuffed that
application and kept Scott+Scott LLP on the lead, citing that due to the
firms experience with anti-trust cases and among other related
considerations – the court had stuck with its initial decision.
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