FRB Seeks to Fine and Ban Former Head of FX Spot Trading Desk

The Board of Governors of the Federal Reserve System ("FRB") is seeking to impose a $487,500 fine and a permanent banking industry bar on the former head of a NY-based foreign exchange ("FX") spot trading desk.

In a Notice of Intent to Prohibit and Notice of Assessment of a Civil Monetary Penalty, the FRB alleged that Peter Little, former head of FX spot trading at Barclays Bank PLC ("Barclays") in New York, coordinated with traders from competitor banks for the purpose of manipulating benchmark currency rates (fix rates). Mr. Little allegedly communicated with the other traders through electronic chat messaging rooms, and shared information including confidential client information. According to the FRB, Mr. Little also failed to adequately supervise other traders. The FRB said that Mr. Little's misconduct benefited him personally and resulted in financial and reputational harm to Barclays (see also "Former Trader Banned for FX Misconduct").