Wednesday, September 25, 2013

UPDATED--What traders shouldn't say over the phone or email, via the CFTC

Update below.
Original post:
From the Commodity Futures Trading Commission:

Examples of Misconduct From Written Communications
Examples of ICAP Yen brokers’ Belief of their Influence on the Yen Market 
and the Yen LIBOR Fixings:

“[Cash Broker 1] has been doing a number on some of the contributors because 
a couple of them were edging their libors slightly lower yesterday before he intervened;”

“i hope that 6m libor has got me back in your good books!! 
used all my powers of persuasion on that one;) ... think 
[Bank A and Bank B] must have looked at [Cash Broker A's] 
first suggestion . . . . they both moved up 11bps to 1.10”

“[Cash Broker 1]
sending out higher than he thinks so hopefuly 
the sheep will just copy”


HT: Counterparties

UPDATE-- Joseph Cotterill at Alphaville has more:
No more Mr Libor