Barclays and Citigroup Draw Lawsuits From Former FX Traders

Following a string of fines for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) manipulation from both US and UK regulatory authorities over the past year, Barclays and Citigroup will now be facing opposition from a new front- their former employees. Two former FX traders, Jack Murray and Carly McWilliams, are reportedly suing their former employers on the grounds of unfair dismissal at a London court, according to a recent Reuters report.

As recently as late November, Barclays incurred a fine of $150 million for manipulating forex markets via its electronic trading platform. The civil penalty was imposed by the New York Department of Financial Services, which was levied on behalf of failures regarding certain internal systems and controls. Both banks have been drawn into lengthy probes and investigations over the past year.

More specifically, Mr. Murray was a former FX trader at Barclays who is now slated to appear in a London employment tribunal later this month on January 28, 2016, per recent court filings. He worked at the lender between December 2010 and May 2015. During this period he was suspended by Barclays in November 2014 and later fired after a series of internal investigations surrounding allegations of FX market rigging.

Meanwhile, Citigroup is facing its own reprisals from a former employee, with ex-London FX trader Carly McWilliams suing the bank. She will also be appearing in a UK court on January 28, 2016, following a claim of unfair dismissal. Ms. McWilliams is one of several ex-London FX traders that are now suing Citigroup after seeding evidence for the former trader, Perry Stimpson.

Stimpson had previously won a claim for unfair dismissal against Citigroup back in November. Finance Magnates will update the case as it develops, namely as any victory in this regard could elicit further actions by former traders voicing the same grievances.