Macaskill on markets: New rules for the trading road

The conviction of former HSBC trader Mark Johnson for front-running a customer FX order could transform the way dealers hedge client trades – and how they communicate with each other.

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In October, Johnson was found guilty by a New York jury of nine out of 10 charges of fraud and conspiracy relating to a $3.5 billion foreign exchange transaction handled by HSBC for its client Cairn Energy.

The offending dealing took place in December 2011 when Johnson was the London-based global head of FX cash trading for HSBC, but he was not arrested until last July, when he was in New York to take up a new role with the bank.

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