Barclays internal email traffic between traders and "LIE-BOR" Submittent
written by Huangjin
, 07.02.2012, 19:24
For friends jurisprudenzforensischer analysis in English: the published
report of the investigation a few days ago (CFTC oversight authority of
the U.S. futures and options markets) in terms of "LIBOR Manipulation by Barclays Bank."
This manipulation (which may be committed not just Barclays), Barclays
and now half a billion dollars in fines and the Chief Administrative cost the head .
A couple of nice juicy details and insights provided by the investigation report to the CFTC, in particular with internal company e-mail and text message traffic between the traders and the people who report to the authorities of the LIBOR:
"[...] The following are just some examples of the trader Numerous requests over the years in question:
1) "WE HAVE TO GET KICKED OUT OF THE FIXINGS TOMORROW! We need a 4:17 fixed at 1 m (low fixed) We need a fix in 4:41 3 m (high fixed) "(November 22, 2005,Senior trader in New York to traders in London);
2) "You need to take a close look at the ladder reset. We need to stay low for the 3M next three sets and then I think that we will be completely out of our position 3M. Then its on. [Submitter] has to go crazy with raising 3M
Libor. "(February 1.2006, tradersTraders in New York to London);
3) "Your annoying colleague again ... Would love to get a 1m high so if poss a low 3m ... ifposs ... thanks "(February 3, 2006, traders in London to Submitter);
4) "This is the [book's] risk. We need 1M and 3M libor low. Ask PIs [submitter] to get 1M set to 82 That would help a lot "(March 27.2006, traders in New York to tradersin London);
5) "We have another big tom fixing [orrow] and move with the market I was hoping we 1M and 3M Libor could the as high as possible "(set May 31, 2006, traders in NewSubmitter to York);
6) "Hi Guys, We got a big position in 3m libor for the next third days Can we please keep fixing the lib or at 5:39 for the next few days. It would really help. We do not want it to fix any higher than that. Tks a lot. "(September 13, 2006, senior trader in New Submitter to York);
7) "For Monday we are very long 3m cash here in NY and would like the setting to be set as low as possible ... thanks "(December 14, 2006, traders in New York to Submitter), and
'PIs. Go for 5:36 Libor again tomorrow, very long and would be hurt by a higher setting ... thanks. "(May 23, 2007, traders in New York to Submitter). [...]"
Similar manipulations obviously for the EURIBOR:
"[...] 1) June 1.2006:
o € Senior Swaps Trader: "Hi [Euribor Submitter], is it too late to ask for a low 3m? "
o Euribor Submitter: "Just about to put them in so no ....."
2) September 7, 2006:
o € Senior Swaps Trader: "i have a huge 1m fixing today and it would really help to have a low 1m tx a lot. "
o Euribor Submitter: "I'll do my best."
o € Senior Swaps Trader: "I am aware because someother banle need a very high one ... . If you could push it very low it would help. I have 50bn fixing. "
3) October 13, 2006:
o € Senior Swaps Trader: "I have a huge fixing something on Monday ... Like 30bn 1m fixing ... and I would like it to be very very very high ..... Can you do something to help? I know a big clearer will be against us ... and do not want to lose money on that one. "
o Euribor submitter forwarded the request to another submitter Euribor, advising: "We always try and do our best to help out ....."
[...]
My understanding is that Barclays has harmed not only the opposite side of trades directly. But by this massive market distortion even indirectly probably much larger number of market participants, the unwound in any form LIBOR and EURIBOR-referenced investments. My dear Scholli, as the Barclays Bank but probably get a lot of applications lodged soon ...
written by Huangjin
, 07.02.2012, 19:24 For friends jurisprudenzforensischer analysis in English: the published
report of the investigation a few days ago (CFTC oversight authority of
the U.S. futures and options markets) in terms of "LIBOR Manipulation by Barclays Bank."
This manipulation (which may be committed not just Barclays), Barclays
and now half a billion dollars in fines and the Chief Administrative cost the head .
A couple of nice juicy details and insights provided by the investigation report to the CFTC, in particular with internal company e-mail and text message traffic between the traders and the people who report to the authorities of the LIBOR:
"[...] The following are just some examples of the trader Numerous requests over the years in question:
1) "WE HAVE TO GET KICKED OUT OF THE FIXINGS TOMORROW! We need a 4:17 fixed at 1 m (low fixed) We need a fix in 4:41 3 m (high fixed) "(November 22, 2005,Senior trader in New York to traders in London);
2) "You need to take a close look at the ladder reset. We need to stay low for the 3M next three sets and then I think that we will be completely out of our position 3M. Then its on. [Submitter] has to go crazy with raising 3M
Libor. "(February 1.2006, tradersTraders in New York to London);
3) "Your annoying colleague again ... Would love to get a 1m high so if poss a low 3m ... ifposs ... thanks "(February 3, 2006, traders in London to Submitter);
4) "This is the [book's] risk. We need 1M and 3M libor low. Ask PIs [submitter] to get 1M set to 82 That would help a lot "(March 27.2006, traders in New York to tradersin London);
5) "We have another big tom fixing [orrow] and move with the market I was hoping we 1M and 3M Libor could the as high as possible "(set May 31, 2006, traders in NewSubmitter to York);
6) "Hi Guys, We got a big position in 3m libor for the next third days Can we please keep fixing the lib or at 5:39 for the next few days. It would really help. We do not want it to fix any higher than that. Tks a lot. "(September 13, 2006, senior trader in New Submitter to York);
7) "For Monday we are very long 3m cash here in NY and would like the setting to be set as low as possible ... thanks "(December 14, 2006, traders in New York to Submitter), and
'PIs. Go for 5:36 Libor again tomorrow, very long and would be hurt by a higher setting ... thanks. "(May 23, 2007, traders in New York to Submitter). [...]" Similar manipulations obviously for the EURIBOR:
"[...] 1) June 1.2006:
o € Senior Swaps Trader: "Hi [Euribor Submitter], is it too late to ask for a low 3m? "
o Euribor Submitter: "Just about to put them in so no ....."
2) September 7, 2006:
o € Senior Swaps Trader: "i have a huge 1m fixing today and it would really help to have a low 1m tx a lot. "
o Euribor Submitter: "I'll do my best."
o € Senior Swaps Trader: "I am aware because someother banle need a very high one ... . If you could push it very low it would help. I have 50bn fixing. "
3) October 13, 2006:
o € Senior Swaps Trader: "I have a huge fixing something on Monday ... Like 30bn 1m fixing ... and I would like it to be very very very high ..... Can you do something to help? I know a big clearer will be against us ... and do not want to lose money on that one. "
o Euribor submitter forwarded the request to another submitter Euribor, advising: "We always try and do our best to help out ....."
[...]
My understanding is that Barclays has harmed not only the opposite side of trades directly. But by this massive market distortion even indirectly probably much larger number of market participants, the unwound in any form LIBOR and EURIBOR-referenced investments. My dear Scholli, as the Barclays Bank but probably get a lot of applications lodged soon ...