Another Forex Conspiracy (Sort of) Proven To Be True

It is known, for the longest time, that "some" banks like to save their clients’ forex orders together and then front run them all by London close. It was a conspiracy theory that the banks denied until, well, they were exposed.

As reported by Bloomberg back in early February,

"Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms …"

What? It is not improper?

Such activity is known as front running by any normal financial securities jurisdiction. I am confused. I am confused because I learned long time ago that front running is an absolute red line you are not allowed to cross. Yet, it is allowed for some banks and some traders trading certain forex markets.

I guess central banks do not follow normal human rules, regulations and most important of all, common sense.

As reported today, this practice is so well known that people learned to taken advantage of them. The trader mentioned in the piece, Caspar Marney, even teaches how to do so from this piece by The Guardian. It is not something complex though. After all, bang the close is a dirty trick common across all markets, not just forex.

Another conspiracy theory proven to be true.

Are we surprised anymore after so many dirty works are exposed last year?

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