Libor-fixing scandal

[jimrobo]

superfrank....is that true about the cancelation charges??? I've never even heard of that? I know there is an issue with using cancel and replace in spread trading and you can get charged by the exchange if you do it too many times??? But the threshold is pretty large.

[superfrank]

superfrank....is that true about the cancelation charges??? I've never even heard of that? I know there is an issue with using cancel and replace in spread trading and you can get charged by the exchange if you do it too many times??? But the threshold is pretty large.

yeah because i looked at another broker (can't remember which atm) and they charged (and it wasn't tiny) and the note explained that some brokers pass it on directly and others don't. it might not be the case with all futures exchanges but i imagine it is.

[superfrank]

From a website run by the National Fraud Authority (http://www.actionfraud.police.uk/fraud- ... nipulation):

'Market manipulation could include making false or misleading statements and completing transactions that have the purpose of giving a false impression about supply or demand.' (emphasis mine)

Jeff

as i understand it Barclays were lying about their borrowing costs, not trading directly.

[jimrobo]

hmmm.....Theres nothing for the eurex anyway in their charges page?? Interestingly their charges are tiny compared to the brokers fee!! Managed to find something relating to IB and the CME but that was 2005 and looks like it never came into effect by the looks of it?

http://www.eurexchange.com/trading/fees_en.html

thats a bit of an eye opener!!!

re the barclays thing.....the traders were asking the submitters to post an incorrect rate so that it reflected favourably on their trades. It is a question of reporting incorrect market data that they are trying to get them on.

[Iron]

True, but my point was that what certain Betfair guys do and what certain Barclays traders allegedly did may both be classed as fraud in the eyes of the law...

As an aside, I wonder to what extent 'information manipulation' takes place in the Betfair markets, where (for example) someone may lay a favourite heavily just before the trainer goes on TV to talk down the horse's chances (even though he thinks the horse will run really well today)...

Jeff

as i understand it Barclays were lying about their borrowing costs, not trading directly.

[superfrank]

As an aside, I wonder to what extent 'information manipulation' takes place in the Betfair markets, where (for example) someone may lay a favourite heavily just before the trainer goes on TV to talk down the horse's chances (even though he thinks the horse will run really well today)...

that kind of thing, if it happens much at all, is just part of the game. someone would have to be extraordinarily well connected in order to have enough opportunities to make a living from that kind of thing.

and with racing we all, hopefully, accept that much of what drives late prices is not in the public domain (much the same with financial markets).

[jimrobo]

theres nothing illegal about having a viewpoint and having a big enough bank to influence the market with that viewpoint. Theres not many people that have big enough pots to influence financial markets anyway. If they tried theres always a bigger fish around the corner.

[steven1976]

I see Barclays are in trouble again with their black pools.

http://m.bbc.com/news/business-28030351