U. S. fines HSBC $175 million for lax forex trading oversight.
WASHINGTON (Reuters) - The U. S. Federal Reserve fined HSBC Holdings PLC ( HSBA. L ) $175 million on Friday for “unsafe and unsound practices” in its foreign exchange trading business, the latest in a series of fines for banks that fail to prevent market manipulation.
HSBC failed to monitor chat rooms where traders swapped information about investment positions, the U. S. central bank said, echoing findings by other regulators investigating the $5 trillion-a-day foreign exchange or FX market.
“The board levied the fine for deficiencies in HSBC’s oversight of and internal controls over FX traders,” the Fed said in a statement.
The fine follows others of more than $4.3 billion levied by the U. S. Commodity Futures Trading Commission and Britain’s Financial Conduct Authority on six banks including HSBC in November 2014.
“We are pleased to have resolved this matter related to practices in the FX market from 2008-2013,” said company spokesman Rob Sherman.
Authorities accused HSBC dealers of sharing confidential information about client orders and coordinating trades to boost their own profits. The foreign exchange benchmark they allegedly manipulated is used by asset managers and corporate treasurers to value their holdings.
The Fed’s enforcement action also requires HSBC to improve its controls and compliance risk management concerning the firm’s FX trading, the Fed said.
Reporting by Patrick Rucker; additional reporting by Lawrence White in London; Editing by Elaine Hardcastle and Tom Brown.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
Foreign Exchange.
A Market Leader.
HSBC is one of the leading global Foreign Exchange (FX) market makers. Whether your execution needs are driven by a transactional, hedging or investment strategy, you can leverage our global footprint, local knowledge and deep expertise to gain unique insights and manage your exposure in a manner aligned with your objectives.
Understanding what you value.
We have a host of sound solutions, providing liquidity from the purely transactional to the highly customised. We provide risk management and tailored solutions such as Transactional FX, Algorithmic Execution, FX indices, FX Overlay and FX Prime Services that allow clients to select and create individual propositions to suit their needs. Our array of strategic support is underpinned by market intelligence and research with global reach. As such, we intend to serve not only on price but also as a provider of choice in analysing FX risk, providing innovative research and insights.
Our Global Reach.
Operating across all time zones, HSBC provides 24-hour coverage from our three main centres in London, New York and Hong Kong. We offer a deep and consistent pool of liquidity across FX instruments – through electronic, both bilateral and third party, and voice channels for FX cash and derivative solutions including spot, forward, NDF, swaps, vanilla and exotic options. Our experienced teams of derivatives specialists can help structure bespoke solutions for your specific requirements.
Our extensive experience in emerging markets reflects our commitment to the long-term development of domestic on-shore/off-shore markets and business in each region. HSBC maintains presence and knowledge in local economies combined with global solutions.
The depth of our liquidity, the strength of our balance sheet and our commitment to investment in technology enables us to deliver value across pricing, execution, post-trade services and client service.
HSBC Algos.
HSBC Currency Risk Management.
HSBC Transactional FX.
HSBC Evolve.
Related insights.
China in the new world order.
Contact us.
To discuss service offerings from Global Banking and Markets, kindly speak to your relationship manager.
Quick links.
HSBC websites.
Terms and Conditions Privacy policy Cookie Policy © HSBC Bank 2017.
You are leaving the HSBC Global Banking and Markets website.
Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.
Margin FX Trading.
Leverage currency investments with Margin FX service.
An exciting currency investment product provides leverage to qualifying customers that seek to include directional currency investments in their asset portfolio.
Key Features:
46 trading currency pairs from 11 major currencies including AUD, CAD, CHF, CNH 1 , EUR, GBP, HKD, JPY, NZD, SGD and USD 24-hour 2 online trading via internet banking and mobile banking Leverage ratio of up to 20 times Wide range of order types include market orders, limit orders, with or without take profit, stop loss or trailing stop options No minimum trading amount requirement.
2 Trading hour-5 am Monday HKT to 5 am Saturday HKT during summer time (US daylight saving), and 5 am Monday HKT to 6 am Saturday HKT during winter time (non-US daylight saving)
Learn how to trade with a Free Trial Account.
Ready to place real trades.
HSBC Premier customers.
HSBC Advance customers.
Other Personal Banking Customers.
Why HSBC Margin FX Trading Services?
Professional User Interface.
HSBC's Margin FX Trading platform provides you with well-organised trading information, advanced charting features, seamless order flow to flexible order placement options. Set up a free Margin FX trial account to familiarize yourself with the platform using real time market data before you actually trade.
Convenient and Integrated Platform.
With one-stop convenience and a totally integrated margin FX trading solution, you can manage your funds flexibly to capitalize on opportunities from anywhere at any time via internet banking platform and mobile banking, i. e. iPhone / iPad.
Flexible Trading.
No minimum trading amount is required. Margin FX collateral account is available in both HKD and/or USD to meet your different needs.
How to invest / get started with HSBC Margin FX Trading Service.
Margin FX Trading Platform.
The platform provides cutting edge trading tools to assist in monitoring and managing currency positions, in real-time Secure internet & mobile interfaces offer intuitive analysis & practical order placement alternatives to assist in grasping investment opportunities as they arise Our FX trading platform integrates seamlessly with our award-winning HSBC Personal Internet Banking, via secure single sign-on; enabling you to monitor FX markets and trade anytime, anywhere, 24hrs, 5.5 days a week.
вЂ˜How to’ Tutorials.
Account Opening of Margin FX.
For existing HSBC Personal Internet Banking customers, please follow the 4 simple steps for account opening:
Read MFX Trading services’ Important Info.
Complete RPQ & Fill in online application form.
Submit the application via online.
For non-HSBC Personal Internet Banking customers, please visit any of our branches for account opening.
Trial Account Opening.
FREE trial account to experience the flexible trading platform using real time market data and virtual funds before you start trading. Register NOW by 2 simple steps!
Fill in address & personal details.
Read & agree the Terms and Conditions.
Risks selected Related Products Additional information.
Risk of trading in leveraged foreign exchange contracts:
The risk of loss in leveraged foreign exchange trading can be substantial. You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.
1 Risks relating to RMB - Margin FX Trading Contract is denominated in offshore RMB rates as traded in Hong Kong. CNH is different from that of RMB traded in Mainland China. You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product. The value of your investment will be subject to the risk of exchange rate fluctuation.
Foreign Exchange.
Trade foreign currencies anytime, anywhere through HSBC’s one-stop service platform.
Transfers & payments.
Save time and effort by completing transactions from home anytime.
Foreign Currency Savings Account.
Manage your savings across different currencies and earn interest on your account balance.
To enable you to take full advantages of global FX market fluctuations, HSBC’s Margin FX Trading Services offers a financial leverage making your money work better for you.
Other ways to invest.
Through our FX Order Watch Trading Services HSBC Premier or HSBC Advance customers can set your own target rate and automatically make transactions when the rate is hit.
Or select our ForEx/Renminbi Switching Services and transfer funds automatically from your HKD account to your foreign currency/Renminbi account (or vice versa) when your pre-set exchange rate and/or frequency criteria are met.
Frequently Asked Questions.
What is a Market Order? Select to expand Select to collapse.
A market order is executed immediately when placed and is priced at the prevailing market rate at the time of execution. When placing a market order, the transaction is usually executed at, or very near, the price displayed when the order was submitted. However, due to the rapidly changing nature of FX exchange rates, it is possible for the rate to move more than you are willing to accept.
To address this, HSBC Margin FX platform enables you to place upper and lower bound on each order that will prohibit the order's execution if the market rate falls outside the limits you specify. The customer is also allowed to set up stop loss, take profit and trailing stop instructions under Market Order.
What is a Limit Order? Select to expand Select to collapse.
A limit order is the order to buy or sell a currency pair at a specified price within a defined period. When the specified price is reached, the limit order will be executed.
How do I open an account? Select to expand Select to collapse.
You need to go through our online application process. Your risk attitude, previous investment experience and other related factors will be reviewed in the application. It usually takes 2 to 3 working days to complete. You will receive confirmation letter and upon account opening.
What is the minimum account balance? Select to expand Select to collapse.
The minimum deposit for opening of margin FX trading services is USD 10,000 or equivalent. The deposit can be placed in any of your collateral accounts.
What is the minimum and maximum trade size? Select to expand Select to collapse.
There is no minimum trade size. The maximum trade size is 5m at base currency. For example, if you are trading EUR/USD, the maximum trade you can make will be for EUR 5m. Please note that the total open positions cannot exceed USD 20m.
Subscribe to the FT to read: Financial Times HSBC forex traders charged with criminal fraud.
Become an FT subscriber.
Keep abreast of significant corporate, financial and political developments around the world. Stay informed and spot emerging risks and opportunities with independent global reporting, expert commentary and analysis you can trust.
Choose the subscription that is right for you.
Purchase a Digital Trial subscription for.
Not sure which package to choose? Try full access for 4 weeks.
$1.00 for 4 weeks *
For 4 weeks receive unlimited Premium digital access to the FT's trusted, award-winning business news.
Purchase a Standard Digital subscription for.
Be informed with the essential news and opinion.
MyFT – track the topics most important to you FT Weekend – full access to the weekend content Mobile & Table Apps – download to read on the go Gift Article – share up to 10 articles a month with family, friends and colleagues.
Purchase a Premium Digital subscription for.
All the essentials plus deeper insights and analysis.
All the benefits of Standard plus:
Lex – our agenda setting daily column In-depth analysis – on trade, emerging markets, M&A, investing and more ePaper – a digital replica of the newspaper Gift Article – share up to 20 articles a month with family, friends and colleagues.
Purchase a Premium Digital + Newspaper subscription for.
FT Newspaper delivered daily plus unlimited digital access.
All the benefits of Premium plus:
The FT delivered to your home or office Monday to Saturday, including the FT Weekend paper and supplements.
Full FT access for your team or business.
Access for your team.
Volume discounts Access on 60+ third-party platforms Pay based on use.
Other options.
The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice.
Комментарии
Отправить комментарий