Why Dodge City’s marshall upset with HSBC

In Banks, Currencies on 27/07/2016 at 1:19 pm

From NYT Dealbook

How Traders Use Front-Running to Profit From Client Orders Federal prosecutors charged two HSBC employees on Wednesday with “front running.” But how do traders use this practice to maximize profits?

  1. This sort of thing is rampant in Singapore. Every morning, the sales desk will line up all the overnight orders from Europe and North America so that the traders can see which way the market is tilted. If there is a particularly large order, especially the stoploss types (sell when the price falls to the stop level, or buy when rise to the stop level), the traders may force prices either by themselves or in collusion with friends in other banks, to the point where the orders are to be executed. That’s how all the tuakee FX traders made their name and also the reason why few local traders skill level progress beyond this crap.

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