Fired Barclays FX trader accused of fraud led to $150m. fine for the bank

David Fotheringhame, former director of the Department of Automated Trading in Fixed-Result Instruments, Currency and Raw Materials, claims Barclays's unlawful dismissal of controversial practice.

The lawyer of the bank said before the court that Fotheringhame had looked at the data and identified the customers that could be considered toxic to the company. "Fotheringhame's answer is that" the system he developed has done it on his own, "and added, that his dismissal was an expression of dissatisfaction on the part of the bank, whose license was withdrawn with the $ 150m fine in 2015.

Three years ago, US regulators imposed a fine of $150m. and withdrawal of the license due to the automated system of Fotheringhame, which, according to them, automatically refuses the transactions that are unprofitable for the company.

According to Fotheringhame attorneys, the dismissal of the former high frequency star is part of a massive effort to hide the abuse of the use of this system, which has resulted in Barclays' exceptional benefits.

The lawsuit gives an overview of banks' use of one of the most common and potentially abusive forex market practices. The practice allows market makers to get the final opportunity to reject the order, which lasts for a few milliseconds, after the client engages in trading at the advertised price.

Source: Finance Magnates

Jr Trader Petar Milanov

Finance Magnates: Fired Barclays FX Trader Says He Was 'Scapegoat' for 'Last Look' Abuse

Read more:

• Trump stock market is far outpacing past US presidents. Here’s what to expect in 2020
• No commission deals – no free lunch
• The next market crash: Experts expect volatility bubble to burst
• The rise in the indexes will last until the end of “Santa Rally”
• Wall St experts on where to invest in 2020