{"id":1806,"date":"2017-09-30T13:58:02","date_gmt":"2017-09-30T18:58:02","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1806"},"modified":"2022-03-23T13:16:23","modified_gmt":"2022-03-23T18:16:23","slug":"hsbc-ordered-pay-175m-fine-forex-trading-oversight","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/","title":{"rendered":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight"},"content":{"rendered":"

The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d in its foreign exchange trading business. According to the Fed, HSBC did not properly oversee chat rooms in which traders exchanged information about investment positions.<\/p>\n

The authorities contend that the bank\u2019s traders exchanged confidential information about client orders and coordinated trades to enhance profits. As part of the securities enforcement action, HSBC will have to improve its controls and compliance risk management as it pertains to FX Trading.<\/p>\n

Ex-HSBC Forex Spot Trader Head Accused of Front Running <\/strong>
\nIn a different case, Mark Johnson, the former head of HSBC’s foreign exchange cash trading desk, is on trial over allegations of \u201cfront-running”<\/a> involving forex spot trading. He and co-conspirator Stuart Scott have been charged with wire fraud and conspiracy for allegedly defrauding Cairn Energy PLC in a multi-billion dollar transaction that occurred in 2011. Front-running involving forex markets usually refers to the making of a trade that is proprietary prior to a customer making a potentially market-moving trade in order to profit.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d in its foreign exchange trading business. According to the Fed, HSBC did not properly oversee chat rooms in which traders exchanged information about investment positions. The authorities contend […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3994],"tags":[2709,2817,2888],"class_list":["post-1806","post","type-post","status-publish","format-standard","hentry","category-bank-fraud","tag-forex-trading","tag-hsbc","tag-mark-johnson"],"yoast_head":"\nHSBC Ordered to Pay $175M Fine Over Forex Trading Oversight — Investor Lawyers Blog — September 30, 2017<\/title>\n<meta name=\"description\" content=\"The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d — September 30, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight — Investor Lawyers Blog — September 30, 2017\" \/>\n<meta name=\"twitter:description\" content=\"The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d — September 30, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight — Investor Lawyers Blog — September 30, 2017","description":"The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d — September 30, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/","twitter_card":"summary_large_image","twitter_title":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight — Investor Lawyers Blog — September 30, 2017","twitter_description":"The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d — September 30, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight","datePublished":"2017-09-30T18:58:02+00:00","dateModified":"2022-03-23T18:16:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/"},"wordCount":627,"keywords":["forex trading","HSBC","Mark Johnson"],"articleSection":["Bank Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/","url":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/","name":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight — Investor Lawyers Blog — September 30, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-09-30T18:58:02+00:00","dateModified":"2022-03-23T18:16:23+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The US Federal Reserve is ordering HSBC Holdings PLC (HSBC) to pay a $175M fine, accusing the bank of engaging in practices that were \u201cunsafe and unsound\u201d — September 30, 2017","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/hsbc-ordered-pay-175m-fine-forex-trading-oversight\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"HSBC Ordered to Pay $175M Fine Over Forex Trading Oversight"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-t8","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=1806"}],"version-history":[{"count":5,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1806\/revisions"}],"predecessor-version":[{"id":25392,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/1806\/revisions\/25392"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=1806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=1806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=1806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}