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Oct 30, 2013

GATA | THE GATA DISPATCH OCTOBER 30, 2013: Citigroup, JPMorgan Said to Put Senior Currency Dealers on Leave.

Citigroup, JPMorgan said to put senior currency dealers on leave

By Gavin Finch, Liam Vaughan, and Ambereen Choudhury
Bloomberg News
Thursday, October 31, 2013
http://www.bloomberg.com/news/2013-10-30/citigroup-jpmorgan-said-to-put-...
 
Citigroup Inc. and JPMorgan Chase & Co. are putting their top London currency dealers on leave after regulators probing the manipulation of foreign-exchange rates started investigating the traders use of an instant-message group, three people with knowledge of the moves said.

Rohan Ramchandani, Citigroup's head of European spot trading, was told today he will be placed on leave, said one of the people who asked not to be identified because he wasn't authorized to talk publicly. Richard Usher, JPMorgan's chief dealer in London, went on leave two weeks ago, said another person. Both are taking leave by mutual agreement with their employers and neither has been suspended, the people said.

 Standard Chartered Plc has also placed Matt Gardiner, its assistant chief dealer in the U.K. capital, on leave, a fourth person said yesterday. None of the traders has been accused of any wrongdoing.
Regulators are focusing on an instant-message group the traders set up to share information about their positions and client orders over a period of at least three years, four people with knowledge of the probe said this month. The roster of banks in the group changed as the men moved firms and also included Barclays Plc, Royal Bank of Scotland Group Plc, and UBS AG, three people with knowledge of the communications said.
Investigators are weighing whether the messages amounted to attempts to manipulate the market, two people said. The five firms account for about 47 percent of the $5.3 trillion-a-day foreign-exchange market, according to a May survey by Euromoney Institutional Investor Plc. Two other traders, who weren't part of the conversations and who asked to not be identified because they do business with those involved, said that they and others in the market referred to the message group as "The Cartel."
Ramchandani referred calls to Citigroup's press office, while Usher didn't respond to e-mails and a message left on his work telephone. Gardiner, who previously worked at Barclays and UBS and moved to London-based Standard Chartered in September, didnt respond to a message left on his mobile telephone. Sarah Small, Jenna Ward and Aurelie Leonard, spokeswomen for RBS, UBS and Barclays declined to comment. Jennifer Zuccarelli, a JPMorgan spokeswoman, and Jeffrey French, a Citigroup spokesman, said they couldnt comment.
RBS, Usher's employer before he joined JPMorgan in 2010, handed over his communications to regulators after concluding that he shared too much information about his positions with counterparts at other firms, two people said.
Usher and Ramchandani were members of the Bank of England's 27-member London Foreign Exchange Joint Standing Committee's subgroup of chief dealers as of December, according to the central banks bulletin for the second quarter. The group met three times last year to discuss matters including regulatory developments and market conditions, according to the bulletin. A Bank of England spokeswoman declined to comment.
Regulators in London and Zurich are probing the foreign-exchange market after Bloomberg News reported in June that dealers in the industry said they had been front-running client orders and attempting to rig the benchmark WM/Reuters rates by colluding with counterparts and pushing through trades before and during the 60-second windows when the benchmarks are set.
The data are collected and distributed by World Markets Co., a unit of Boston-based State Street Corp. and Thomson Reuters Corp. Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing news and information as well as currency-trading systems.

The rates determine what many pension funds pay for their foreign exchange and are used by index providers such as FTSE Group to calculate indexes spanning multiple currencies. Index tracker funds, which buy and sell currencies at the 4 p.m. WM/Reuters rates, typically place their orders in the hour or so before the close, giving dealers a picture of their complete order book in advance of the so-called fix.

Because banks agree with clients to trade at the WM/Reuters rates, regardless of later moves, dealers are at risk of losses if the market moves against them.

Barclays and Frankfurt-based Deutsche Bank AG have said they're cooperating with regulators probing the foreign-exchange market, while Switzerland's UBS said yesterday it's taking measures against employees. The Zurich-based firm didnt identify or quantify the number of employees involved, or say what actions it took.

The U.S. Justice Department opened a criminal investigation of possible manipulation of the foreign-exchange market, a person familiar with the matter said on Oct. 11.

* * *

NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS: Lackluster Economic Reports Underscore Fed’s Stand-Pat Decision.

The New York Times | MY ALERTS

FGC BOLSA- FGC FIN

Compiled: October 30, 2013 06:36:13 PM

Job growth slowed in October, and the Federal Reserve decided to maintain its $85 billion monthly bond-buying program.

DealBook P.M. Edition Ocober 30, 2013.


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The Wall Street Journal | Most Active Closing October 30, 2013.

Most Actives Closing
Most Active Stocks by Volume
4:47 pm ET 10/30/2013
NYSE
Issue Volume Price Chg % Chg
Bank of America (BAC) 75,106,369 $14.17 0.02 0.14
Western Union (WU) 55,122,842 16.85 -2.39 -12.42
Sprint (S) 52,895,884 6.93 0.25 3.74
Teva Pharmaceutical Industries ADS (TEVA) 51,609,552 37.70 -3.32 -8.09
Nokia ADS (NOK) 50,321,138 7.62 0.17 2.28
General Motors (GM) 41,840,427 37.23 1.17 3.24
Ford Motor (F) 39,296,622 17.34 -0.17 -0.97
General Electric (GE) 39,253,878 26.37 0.16 0.61
J.C. Penney (JCP) 27,883,115 7.60 0.22 2.98
Rite Aid (RAD) 25,941,666 5.21 0.03 0.58
Brixmor Property Group (BRX) 24,026,958 20.40 0.40 2.00
Alcatel-Lucent ADS (ALU) 22,785,963 3.30 0.01 0.30
Barrick Gold (ABX) 22,709,313 20.50 0.73 3.69
Alcoa (AA) 22,495,929 9.46 -0.08 -0.84
Citigroup (C) 22,202,449 49.89 -0.33 -0.66
Pfizer (PFE) 22,167,291 30.93 -0.32 -1.02
AT&T (T) 21,605,507 36.26 -0.01 -0.03
Petroleo Brasileiro ADS (PBR) 19,609,176 17.45 0.12 0.69
EXCO Resources (XCO) 19,050,283 5.77 -0.82 -12.44
NQ Mobile ADS (NQ) 16,474,812 12.25 1.24 11.26
Cemex ADS (CX) 16,285,145 10.59 -0.37 -3.38
Advanced Micro Devices (AMD) 16,102,729 3.30 -0.03 -0.90
Regions Financial (RF) 16,013,122 9.54 0.04 0.42
JPMorgan Chase (JPM) 15,867,883 52.60 -0.13 -0.25
Wells Fargo (WFC) 15,677,458 43.10 0.14 0.33
Nasdaq
Issue Volume Price Chg % Chg
Facebook Cl A (FB) 83,147,977 $49.01 -0.39 -0.78
Sirius XM Radio (SIRI) 36,739,139 3.73 0.01 0.24
Microsoft (MSFT) 36,367,168 35.54 0.02 0.06
Micron Technology (MU) 31,714,785 17.39 -0.11 -0.60
PowerShares QQQ Trust Series 1 (QQQ) 31,122,902 82.98 -0.08 -0.10
Cisco Systems (CSCO) 29,573,455 22.70 -0.12 -0.53
Intel (INTC) 23,721,203 24.50 -0.03 -0.11
Zynga (ZNGA) 19,966,488 3.59 -0.10 -2.71
Flextronics International (FLEX) 17,176,565 7.87 -0.99 -11.14
Amarin ADS (AMRN) 17,121,183 1.81 -0.28 -13.60
Gilead Sciences (GILD) 16,483,523 72.67 3.17 4.56
21st Century Fox Cl A (FOXA) 15,951,985 33.94 -0.88 -2.54
Cirrus Logic (CRUS) 15,055,757 21.06 -3.36 -13.76
Groupon (GRPN) 14,852,837 9.14 -0.30 -3.16
Central European Media Enterprises Cl A (CETV) 14,749,508 2.82 -3.29 -53.85
Vodafone Group ADS (VOD) 14,225,332 36.32 -0.02 -0.06
Activision Blizzard (ATVI) 14,180,637 16.61 0.02 0.13
Yahoo! (YHOO) 14,131,377 32.57 -0.60 -1.81
Baidu ADS (BIDU) 14,021,864 164.93 5.52 3.47
American Capital Agency (AGNC) 13,830,442 21.54 -0.34 -1.53
Polycom (PLCM) 13,567,005 10.39 -0.18 -1.70
Ariad Pharmaceuticals (ARIA) 13,338,085 3.96 0.17 4.49
Comcast Cl A (CMCSA) 13,112,167 47.09 -0.62 -1.30
Electronic Arts (EA) 12,912,804 26.00 1.87 7.75
BlackBerry (BBRY) 12,362,201 8.14 -0.17 -2.10
NYSE Arca
Issue Volume Price Chg % Chg
SPDR S&P 500 ETF Trust (SPY) 124,577,455 $176.29 -0.88 -0.50
iShares MSCI Emerging Markets ETF (EEM) 53,742,751 42.90 -0.23 -0.54
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX) 44,993,960 12.95 0.12 0.94
iShares Russell 2000 ETF (IWM) 42,932,022 109.83 -1.52 -1.37
Market Vectors ETF Trust Market Vectors Gold Miners (GDX) 40,386,544 26.23 0.45 1.73
Select Sector SPDR-Financial (XLF) 32,625,048 20.79 -0.09 -0.41
iShares MSCI Japan ETF (EWJ) 28,994,074 11.97 0.00 0.00
iShares China Large-Cap ETF (FXI) 23,425,058 37.54 0.51 1.38
Vanguard FTSE Emerging Markets ETF (VWO) 17,818,238 42.15 -0.21 -0.51
iShares MSCI EAFE ETF (EFA) 17,700,458 66.25 -0.24 -0.36
Direxion Daily Small Cap Bear 3x Shares (TZA) 13,380,894 20.40 0.78 3.98
Select Sector SPDR-Utilities (XLU) 12,289,672 38.92 -0.25 -0.65
Select Sector SPDR-Consumer Staples (XLP) 11,863,772 42.57 -0.37 -0.86
iShares Silver Trust (SLV) 11,278,771 21.88 0.19 0.88
Select Sector SPDR-Energy (XLE) 11,249,464 86.69 -0.59 -0.68
VelocityShares Daily Inverse VIX Short Term ETN (XIV) 11,245,315 28.85 -0.46 -1.57
iShares MSCI Brazil Capped ETF (EWZ) 11,177,140 50.93 -0.04 -0.08
Direxion Daily Small Cap Bull 3x Shares (TNA) 10,742,100 67.91 -2.91 -4.11
ProShares UltraShort S&P500 (SDS) 10,269,282 33.06 0.33 1.01
iShares 20+ Year Treasury Bond ETF (TLT) 9,796,289 107.41 -0.65 -0.60
SPDR Gold Trust (GLD) 8,807,183 129.60 -0.17 -0.13
Select Sector SPDR-Industrial (XLI) 8,796,437 48.61 -0.22 -0.45
Select Sector SPDR-Health Care (XLV) 8,221,187 52.98 -0.29 -0.54
SPDR S&P Oil&Gas Exploration&Production ETF (XOP) 7,923,789 70.53 -1.36 -1.89
ProShares Ultra S&P500 (SSO) 7,913,783 92.88 -0.97 -1.03
Composite
Issue Volume Price Chg % Chg
SPDR S&P 500 ETF Trust (SPY) 124,577,455 $176.29 -0.88 -0.50
Facebook Cl A (FB) 83,147,977 49.01 -0.39 -0.78
Bank of America (BAC) 75,106,369 14.17 0.02 0.14
Western Union (WU) 55,122,842 16.85 -2.39 -12.42
iShares MSCI Emerging Markets ETF (EEM) 53,742,751 42.90 -0.23 -0.54
Sprint (S) 52,895,884 6.93 0.25 3.74
Teva Pharmaceutical Industries ADS (TEVA) 51,609,552 37.70 -3.32 -8.09
Nokia ADS (NOK) 50,321,138 7.62 0.17 2.28
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX) 44,993,960 12.95 0.12 0.94
iShares Russell 2000 ETF (IWM) 42,932,022 109.83 -1.52 -1.37
General Motors (GM) 41,840,427 37.23 1.17 3.24
Market Vectors ETF Trust Market Vectors Gold Miners (GDX) 40,386,544 26.23 0.45 1.73
Ford Motor (F) 39,296,622 17.34 -0.17 -0.97
General Electric (GE) 39,253,878 26.37 0.16 0.61
Sirius XM Radio (SIRI) 36,739,139 3.73 0.01 0.24
Microsoft (MSFT) 36,367,168 35.54 0.02 0.06
Select Sector SPDR-Financial (XLF) 32,625,048 20.79 -0.09 -0.41
Micron Technology (MU) 31,714,785 17.39 -0.11 -0.60
PowerShares QQQ Trust Series 1 (QQQ) 31,123,202 82.98 -0.08 -0.10
Cisco Systems (CSCO) 29,573,455 22.70 -0.12 -0.53
iShares MSCI Japan ETF (EWJ) 28,994,074 11.97 0.00 0.00
J.C. Penney (JCP) 27,883,115 7.60 0.22 2.98
Rite Aid (RAD) 25,941,666 5.21 0.03 0.58
Brixmor Property Group (BRX) 24,026,958 20.40 0.40 2.00
Intel (INTC) 23,721,203 24.50 -0.03 -0.11
Footnotes
Includes common, closed end funds, ETFs, ETNs and REITS
x - stock is trading ex-dividend
Source: WSJ Market Data Group