Traders Said to Rig Currency Rates to Profit Off Clients -
http://www.bloomberg.com...profit-off-clients.html
Quote:Traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.
One trader with more than a decade of experience said that if he received an order at 3:30 p.m. to sell 1 billion euros ($1.3 billion) in exchange for Swiss francs at the 4 p.m. fix, he would have two objectives: to sell his own euros at the highest price and also to move the rate lower so that at 4 p.m. he could buy the currency from his client at a lower price.
He would profit from the difference between the reference rate and the higher price at which he sold his own euros, he said. A move in the benchmark of 2 basis points, or 0.02 percent, would be worth 200,000 francs ($216,000), he said.
@symbols - read that article.
Very interesting that since 2010 the manipulation that is so common in financial markets for eons is now going mainstream. Wonder how many have noticed the number of hedge funds that have gone bust or shutdown or basically have walked away from the game. Next on line is private equity firms.
If there is on thing the dark knights have come to dislike it is the internet. Too much info has now exposed the markets hidden hand and making profits from the sheep is becoming harder by the day as the sheep walk away or read into the manipulation and profit like the masters
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!