A story of a large trading bank taking advantage of a wealthy trader to skim profits before a trade.
The bank’s former global head of foreign exchange alerted the traders around the globe via a phone call in December 2011 that was recorded, a prosecutor said Thursday. The gambit was designed to take advantage of a $3.5 billion client order to buy sterling, the U.S. says.Why would the wealthy trader trust a human after already deciding the trade? Better for the wealthy to give orders to a trading bot, such as:
- no more than 100 transactions,
- keep price variation to 85% of the volatility weighted mean.
- keep fees within bounds
The bot is protected code and the exchange is not allowing you to use unverified bot. It runs asynchronous, has equal access to the trade book and a fair pit boss. Why risk the natural tendency of humans to skim?
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