Is forex market controlled by someone? - page 47

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Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents.

Common foreign exchange controls include:

  • Banning the use of foreign currency within the country
  • Banning locals from possessing foreign currency
  • Restricting currency exchange to government-approved exchangers
  • Fixed exchange rates
  • Restrictions on the amount of currency that may be imported or exported
 

I think that it is controled by several decentralized huge facilities with common goal. These organizations as well as their chief members, for self-understanding reasons, are not disclosed. They live everyday life among us as the shadow of forex:)))

 

Weekend comments from SNB's Jordan - confirms intervention in FX market

Swiss National Bank Chairman Thomas Jordan, in an interview with Swiss NZZ am Sontag on the weekend

  • "We have always stressed that we will be active in the currency market if necessary.In the second half of June, when the Greek (bailout) negotiations were at a critical stage,we intervened, for example, stabilising the foreign exchange market."

    • More:

    • Swiss interest rates will stay negative "for some time"
    • Said the CHF was "clearly overvalued"
    • Defusing the Greek debt crisis eased some upward pressure on the franc

      • On moves towards policy normalization in other coutnries:

    • "It is said that the U.S. central bank may under some circumstances start normalising monetary policy, and then possibly England could raise interest rates a bit.
    • There are signs that the economy is recovering in the euro area. Then monetary policy could normalise there. That would let us get away from negative rates"

    Via Reuters

    -

    NZZ am Sontag is Swiss newspaper Neue Zürcher Zeitung am Sontag (NZZ on Sunday)

    -

    Jordan has been a bit chatty lately:

  • Jackson Hole speech
 
  • "We have always stressed that we will be active in the currency market if necessary.In the second half of June, when the Greek (bailout) negotiations were at a critical stage,we intervened, for example, stabilising the foreign exchange market."

This is cynical at the least

 

Tricking the market ... how to do it ... and how spoofers are caught

"Spoofing" the market is when a trader enters orders to make it look like there is more demand or supply than there actually is, with the intention of shifting the price and then getting the real order filled at a better price.

For example, in China officials allege spoofing on the stock exchanges of Shanghai and Shenzen.

The point about tricking the market into believing there is more demand or supply than there actually is, is that the 'spoofer' pushes a price in one direction before executing an order in the opposite direction.

For example a spoofer might place a huge amount of offers in the market ... other traders, seeing the deluge of offers might place their own sell orders looking for the price to fall, or indeed just sell by hitting a bid ... then the spoofer pulls his (or her) sell orders and executes a big buy order, so getting filled at a better price than otherwise.

Bloomberg have an interesting piece up on how its done, including some great graphics. It focuses on a futures market; but the idea is the same in any market.

Check out the Bloomberg story, here: How to Catch a Spoofer

What are your views on spoofing?

  • Outraged?
  • M'eh?

Whatever they are, it happens.

source

 

Millions of traders trade in forex market at one time, so no one can control the market. However, several high impact news cause some timely movement in one direction forced by several big banks and investment heads.

 
Candle:
Millions of traders trade in forex market at one time, so no one can control the market. However, several high impact news cause some timely movement in one direction forced by several big banks and investment heads.

Yes this is a known fact that we see lot of trading so their is not a single entity that can actually control the Forex markets in general.

 

Criminal Charges Filed Against Nomura Traders For Skimming Off Bid/Ask Spreads, Making Millions In The Process

Nearly three years ago, we explained why when it comes to fixed income traders in the traditional, and very lucrative, over the counter market, "the days of rampant skimming on top of the bid/ask spread, and with them record bonuses for bond traders and salesmen, may just ended with a whimper not a bang, and all bond traders hoping to make millions by misrepresenting what the true purchase or sale prices are to buysider clients, even if completely voluntary on both sides, may want to seek employment elsewhere.

They have Jesse Litvak to thank for it.

Jesse is a former MBS trader from Jefferies, who got just a little too greedy, and proceeded to rip virtually all of his clients on seemingly every single trade he executed for the three years he was employed at Jefferies, lying to everyone in the process: both clients and in house colleagues, generating some $2.7 million in additional revenue for Jefferies for the duration of his tenure, and who knows how much in personal bonuses."

Today, in the first official criminal action following the Litvak bust from 2013, the SEC confirmed that our assessment was spot on after the regulator announced fraud charges against three traders "accused of repeatedly lying to customers relying on them for honest and accurate pricing information about residential mortgage-backed securities (RMBS)."

In the complaint, the SEC alleges that Ross Shapiro, Michael Gramins, and Tyler Peters defrauded customers to illicitly generate millions of dollars in additional revenue for Nomura Securities International, the New York-based brokerage firm where they worked. They misrepresented the bids and offers being provided to Nomura for RMBS as well as the prices at which Nomura bought and sold RMBS and the spreads the firm earned intermediating RMBS trades. They also trained, coached, and directed junior traders at the firm to engage in the same misconduct.

In a parallel action, the U.S. Attorney’s Office for the District of Connecticut announced criminal charges against Shapiro, Gramins, and Peters, who no longer work at Nomura.

“The alleged misconduct reflects a callous disregard for the integrity and obligations expected of registered securities professionals,” said Andrew Ceresney, Director of the SEC’s Enforcement Division. “Not only did these traders lie to their customers, but they created a corrupt culture on Nomura’s trading desk by coaching more junior traders to employ the same deceptive and dishonest trading practices we allege in our complaint.”

Why did they do it? Simple: millions in bonuses paid to those who generated the most revenue, no matter how it was achieved. To witL

  • The lies and omissions to customers by Shapiro, Gramins, and Peters generated at least $5 million in additional revenue for Nomura, and lies and omissions by the subordinates they trained and coached generated at least $2 million in additional profits for the firm.
  • Nomura determined bonuses for Shapiro, Gramins, and Peters based on several factors including revenue generation. Nomura paid total compensation of $13.3 million to Shapiro, $5.8 million to Gramins, and $2.9 million to Peters during the years this misconduct was occurring.
  • Customers sought and relied on market price information from these traders because the market for this type of RMBS is opaque and accurate price information is difficult for a customer to determine. Therefore it was particularly important for the traders to provide honest and accurate information.
  • Shapiro, Gramins, and Peters went so far as to invent phantom third-party sellers and fictional offers when Nomura already owned the bonds the traders were pretending to obtain for potential buyers.

read more

 

If it was only Nomura. It is all of them doing the same things

 
whisperer:
If it was only Nomura. It is all of them doing the same things

Thet are all good, old honest banksters They can not keep their hands out of others pockets

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