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Is Forex Trading Rigged? Insider Currency Trading Exposed

18 Years ago | May 11, 2014 5/24/22, 12:00 AM

Is forex trading rigged? Do insiders get access to information before we do? Is there anything we can do about it? If an amateur could pull it off, what about a pro? This article reveals a case of currency insider trading and raises questions about whether this is a widespread practice.

I wrote a series of articles about my suspicions that Eurozone HICP was leaked beforehand that I reported to EUROSTAT: Was Eurozone HICP (CPI) Leaked Beforehand? Was Eurozone HICP (CPI) Leaked Beforehand? (Update), Was Eurozone HICP (CPI) Leaked Beforehand? (Update)

While I did not make much headway with EURIOSTAT, it is did not ease my conspiracy theory that data often gets leaked beforehand but authorities seem to have little appetite to investigate.

Well, one scheme was revealed in Australia and the culprits caught (see below). What bothers me is these were amateurs who got away with it for a long time. Imagine if they were the big guys who probably spread the inside trades among several brokers in different countries? How would they get caught? This raises questions about a rigged market and whether some have an advantage, not only through speed of getting the news but actual inside information. At a minimum, it suggests being careful trading the news if you assume you are not the first to see the headlines.

The Guardian:

Second man in court on $7m insider-trading scam charges

Australian Bureau of Statistics' employee Christopher Hill refused bail, extradited to Melbourne

Two men allegedly involved in a $7m insider-trading racket used mobile telephones in false names to communicate sensitive market information, a court has heard.

An Australian Federal Police agent, Pamela Damokas, told the ACT Magistrates' Court on Saturday that Christopher Russell Hill, 24, an employee of the Australian Bureau of Statistics in Canberra, had access to labour force and retail trade data before it was officially released.

He wrote down that information and communicated it to a National Australia Bank employee, Lukas James Kamay, 26, who worked in Melbourne.

Using that insider information, Kamay allegedly executed foreign-exchange derivative trades, making a little more than $7m…. read full article


Jay Meisler, founder

Global Traders Association





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