Skip to content
  • forex news
wikifx

wikifx

  • forex news
  • Toggle search form
  • Interactive Brokers announces new TWS API release forex news
  • Swedish regulator imposes SEK 14 million fine on ClearOn forex news
  • SEC warns ex-Goldman analyst accused of insider trading violates Court orders forex news
  • FCA issues final notice to Finablr forex news
  • Equinix to acquire MainOne for $320M forex news
  • GKFX parent GKG buys Turkish CFDs broker Isik Menkul forex news
  • Moscow Exchange to expand lineup of international stocks forex news
  • FCA Wants To Fine Barclays £50 Million Over Secret Qatar Funding forex news

CFTC action against former HSBC exec reaches Hong Kong

Posted on 2021-09-28 By admin No Comments on CFTC action against former HSBC exec reaches Hong Kong

A lawsuit brought by the United States Commodity Futures Trading Commission (CFTC) against former HSBC executive Christophe Rivoire, who is accused of market manipulation, has spread to Hong Kong.

Christophe Rivoire is now seeking the assistance of the judicial authorities of Hong Kong in obtaining necessary witness testimony from non-party Stephan Tsang, who in 2012 served as the Co-Head of Rates in Asia for HSBC Holdings plc.

Mr Tsang participated in calls with Mr Rivoire regarding the transaction that is at the heart of the CFTC case. Counsel for Mr Rivoire has engaged in good faith discussions with U.S. counsel for Mr Tsang in an effort to reach a resolution wherein Mr Tsang would voluntarily provide testimony in a remote deposition in this action. To date, Mr Tsang has agreed to voluntarily provide testimony in Hong Kong, but only in the presence of his counsel in person.

This is not possible due to the ongoing COVID-19 pandemic and current travel restrictions and quarantine requirements for U.S. citizens traveling to Hong Kong. The defendant is thus seeking Mr Tsang’s testimony through a Letter of Request.

Let’s recall that, on December 19, 2019, the CFTC filed a complaint in the New York Southern District Court. This is a civil lawsuit alleging that the defendant, Christophe Rivoire, violated various United States federal statutes, including the Commodities Exchange Act. Mr Rivoire has denied the allegations.

The Complaint arises from a 2012 transaction involving subsidiaries of HSBC and a Japanese bond issuer. In July 2012, HSBC served as co-underwriter and sole swap arranger on a $2 billion bond issuance and corresponding U.S. dollar interest rate swap for the Issuer.

Under the terms of the Bond Issuance, the Issuer issued $2 billion 5-year obligation bonds and paid a fixed rate of interest to investors. The Bond Issuance was priced on a conference call on July 11, 2012. Concurrently with the Bond Issuance, the Issuer entered into an Interest Rate Swap with HSBC, where the Issuer swapped its fixed-rate payment obligations for a floating rate obligation. Mr Tsang, whose examination is requested, participated in calls with Mr Rivoire regarding the Transaction.

The complaint alleges that Mr Rivoire, the head of HSBC’s North American Rates business, engaged in a scheme to manipulate the prices of U.S. dollar interest rate basis swaps with a five-year maturity, which were used to price the Interest Rate Swap. The Complaint alleges that manipulated prices were used to price the Interest Rate Swap, resulting in a more profitable transaction for HSBC and a less profitable transaction for the Issuer.

In support of its argument, the Complaint refers to discussions between Mr Rivoire and Mr Tsang regarding the Transaction. The CFTC alleges that in these discussions, Mr Rivoire told Mr Tsang that traders could manipulate the market in connection with the Transaction.

The CFTC alleges that, by engaging in this conduct, Mr Rivoire violated Sections 6(c)(1),13(a) and 13(b) of the Act, 7 U.S.C. § 9(1), 13c(a), and 13c(b) (2018), and Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019).

The CFTC is seeking: (i) an order finding the Mr. Rivoire violated certain U.S. federal statutes; (ii) a permanent injunction; (iii) civil monetary penalties; (iv) disgorgement; (v) full restitution to the Issuer in the amount that the Issuer was harmed; (vi) costs and fees; and (vii) such other relief as the Court deems just and proper.

forex news Tags:forex-news

Post navigation

Previous Post: Questrade launches QuestMobile app
Next Post: SEC goes after traders who executed thousands of “wash trades”

Related Posts

  • Bank of America launches CashPro Forecasting forex news
  • A must-see for beginners: How to trade Forex? forex news
  • Spotware further enhances cTrader mobile app forex news
  • Schwab launches online Financial Planning Action Center forex news
  • HBS prof Vikram Gandhi invests in Ronald Cohen’s MillTechFX forex news
  • More than 630 illegal investment websites already blocked in Italy forex news

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Forex Trader News of the Week
  • A-book forex brokers VS A-book brokers, differences?
  • BrokersView Ranking: Top10 forex brokers Nigeria
  • STC Trade View: Is STC Trade Broker Safe?
  • Fake Authority Scam In Germany Claimed To Be UK FCA Warned By BaFin

TAG

Axiory Review 2022 B2B B2Broker News Basic Forex Knowledge broker brokers brokers in the UK Brokersview Broker tools CFDs coin News cryptocurrency Cryptocurrency News Crypto News dogecoin FCA news finance forex forex-news Forex Broker Forex Brokers Forex Demo Account Forex market forex news forex scams forex time Forex trading fx fxtrader fxtrading Global Forex Gold Analysis HotForex InstaForex LiteForex Review 2022 markets work MT4 MT5 news OctaFX Review Samtrade FX South Africa trade Forex traders Trading Forex
  • SEC obtains entry of default against AirBit Club promoter forex news
  • European Commission extends time-limited equivalence for UK CCPs forex news
  • IG Group successfully completes comprehensive debt refinancing exercise forex news
  • Exclusive: Trading 212 shareholders pump in another £13.75 million of capital forex news
  • Public.com sponsors Premier Lacrosse League forex news
  • Sheer Markets deploys Centroid Solutions to drive NDF liquidity forex news
  • Interactive Brokers launches GlobalAnalyst forex news
  • Schwab launches online Financial Planning Action Center forex news

Copyright © 2023 wikifx.

Powered by PressBook News WordPress theme