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Former UBS Trader is Helping Prosecutors Pursue Forex Rigging Cases Against Individuals

Bloomberg reports that according to sources, Matt Gardiner, a former UBS Group AG (UBS) trader who was part of the instant-messaging group the federal government identified when obtaining guilty pleas from Barclays PLC (BARC), Royal Bank of Scotland (RBS), UBS, Citigroup (C), and JPMorgan Chase & Co.(JPM) over currency-rate manipulation, is working with prosecutors to pursue certain individuals over the rigging allegations. The Cartel chat room to which Gardiner belonged existed from at least 12/07 through 1/013.

According to prosecutors, traders who were part of the chat room communicated in code to share information about orders made by clients and to coordinate euro-dollar trades so that they could make more money. Having someone like Gardiner working with the government could help prosecutors understand what the traders were doing together. It’s unknown at this time whether his cooperation is part of a prosecution deal he may have reached.

His former firm, UBS, was granted immunity from antitrust charges because it was the first financial institution to report the market misconduct. Meantime, the banks whose traders were in the Cartel have turned over chat transcripts to the U.S. Department of Justice and foreign authorities. A lot of the chats occurred right before daily fixes, which is the short period of time when data providers are able to get a picture of trading in order to establish daily rates.

To date, no individuals who were part of this Cartel have been chart.

Our securities lawyers represent investors seeking to recoup their money that they lost due to fraud, negligence, or other wrongful misconduct. Contact The SSEK Partners Group today.

Ex-UBS Trader in ‘Cartel’ Said to Help U.S. in Currency Probe, Bloomberg, April 22, 2016

Forex traders at heart of ‘Cartel’ chat rooms, Financial Times, November 13, 2014

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