Heering Ligthart President ACI -The Financial Markets AssociationFortis Bank NV-SA, Merchant/Institutional Banking
Heering Ligthart President ACI -The Financial Markets AssociationFortis Bank NV-SA, Merchant/Institutional Banking

FX scandals – has big brother gone blind?

Heering Ligthart discusses how recent FX trading scandals can be divided into fraudulent actions and illegal or unauthorised trading.

First Published: e-Forex Magazine 14 / Foreword / April, 2004

The wholesale foreign exchange market is something very mysterious, something virtual, incomprehensible to many, a challenge for others but by far the largest segment in the international financial markets. Being a trader in this market means you are probably operating in the second oldest profession in the world, attracting participants from all kinds of background.Being active in this huge, 24 hour market, with a daily volume of USD 1,2 trillion – see BIS survey of April 2001 – presents many opportunities for making money if you are willing to cope with a high degree of stress. If successful, you can make a lot of money for your institution as well as yourself. Generous bonus schemes might be attractive for institutions and market participants alike, but can be - and in many cases will be – the driving force behind fraudulent and/or illegal trading. Greed can play an important role next to status and image: the “I can move the market” mentality. All these factors are...continued

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