Goldman Sachs to pay $120m penalty

January 13, 2017 09:00 AM
The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest ra

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.

Goldman, through its traders, bid, offered and executed transactions in interest rate swap spreads, U.S. Treasuries and Eurodollar futures contracts in a manner deliberately designed — in timing, price and other respects — to influence the published USD ISDAFIX in order to benefit the Bank in its derivatives positions.

“This matter, the third enforcement action relating to the ISDAFIX benchmark, demonstrates the breadth of this kind of misconduct across the industry, and within Goldman, the extent of the misconduct across trading desks and product lines,” said Aitan Goelman, the CFTC’s director of enforcement. 

TD Ameritrade
TD Ameritrade now offers earnings analysis capabilities on its thinkorswim® trading platform. Through a new relationship with Estimize, thinkorswim users can view a security’s projected range of earnings and revenues from third-party Wall Street analysts along with crowdsourced estimates for past and upcoming earnings periods.

The National Futures Association’s Board of Directors unanimously approved and appointed Thomas Sexton to serve as NFA’s president and CEO, effective March 1, 2017. Current NFA President and CEO Daniel Roth, who announced his retirement in May 2016, will work closely with NFA’s Board and Sexton during this transition.

The Commodity Futures Trading Commission announced on Nov. 30 an order granting CME Clearing Europe Limited (CMECE) registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act. CMECE will be authorized to provide clearing services for U.S. clearing members as well as their customers. The order permits CMECE to provide these clearing services for swaps as well as for futures and options on futures traded on or subject to the rules of a designated contract market.

Neil McDonald has joined the firm as global head of trading and quantitative analytics. McDonald will be responsible for driving the strategic growth of OANDA’s electronic trading business as well as leading the global trading, quantitative analytics and research groups. “Neil’s 30 years’ experience in trading and the financial services sector is a tremendous addition to OANDA’s leadership,” said Ed Eger, president and CEO of OANDA Corp.

Rumi Morales has joined CME as leader of CME Ventures. Morales facilitates promoting the advancement of blockchain-based technologies including start-ups, software companies, global IT consultancies, financial institutions and investment firms. Before joining CME Group in 2010, Morales led the APAC business of Goldman Sachs’ Global Markets Institute in Hong Kong.

Bloomberg Tradebook
Bloomberg’s global agency brokerage business announced the release of its Relative Benchmark Trading algorithm for its cross-asset trading platform, PAIR. The enhancement gives Bloomberg Tradebook clients the ability to trade one security relative to a set benchmark, reduce the costs of trading and better manage risk. 

Fidessa group
Fidessa Group Plc. announced that China Renaissance has implemented Fidessa’s Asian trading platform. The platform will support the expansion of its equities business across Asia with a centralized order management and execution system. China Renaissance provides a wide range of financial services including private placements, mergers and acquisitions, underwriting, securities brokerage and asset management.

The New York Stock Exchange, part of Intercontinental Exchange (ICE), announced it has entered into an agreement to acquire the National Stock Exchange (NSE). The transaction is expected to close in the first quarter of 2017. Terms were not disclosed and the financial impact will not be material to ICE. Subject to Securities and Exchange Commission approval, NSX will continue to operate as a licensed NMS exchange; it previously announced it would close on Dec. 16. The acquisition will give NYSE Group an additional U.S. exchange license, bringing its total to four.

Optionscity Software
OptionsCity Software announced a new mobile version of its cloud-based futures trading platform, CityTrader. CityTrader Mobile is accessible on any web browser and can be white-labeled by third-parties as a value add for their customers.

The Dubai Gold and Commodities Exchange (DGCX) and Chinese Gold and Silver Exchange Society (CGSE) signed a memorandum of understanding (MOU) to generate greater benefits for DGCX and CGSE in emerging markets and further develop the precious metals markets in Asia and the MENA region. The signing of the MOU was announced Dec. 12, 2016.

ICAP Plc., a leading markets operator and provider of post-trade risk mitigation and information services, announced the appointment of Stuart Connolly as head of client product development for its Post Trade Risk and Information (PTRI) division. In this newly created role, Connolly will report to Jenny Knott, chief executive officer for PTRI based in London.

Tocom, SGX
The Tocom and the SGX have signed a memorandum of understanding (MOU) to cooperate in developing the liquid natural gas (LNG) market in Asia, a region that accounts for over 60% of the world’s LNG demand, as well as to share their experiences in developing electricity futures. The signing of the MOU was announced on Nov. 22, 2016, ahead of the 5th annual LNG Producer-Consumer Conference in Tokyo.

Grow Generation Corp.
The GRWG announced on Nov. 28 that the DTC has approved the company’s eligibility application for Grow Generation Corp. The DTC, a subsidiary of the DTCC, manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through the DTC are considered “DTC eligible.” This electronic method of clearing securities expedites the receipt of stock and cash and accelerates the settlement process for investors and brokers. 

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