Former Trader Banned for FX Misconduct

The Board of Governors of the Federal Reserve System ("FRB") banned a former trader for engaging in foreign exchange market practices alleged to be "unsafe and unsound."

In an Order of Prohibition (the "Order"), the FRB contended that Michael Weston used electronic messaging systems to communicate with competitors about trading positions and shared confidential customer information while he worked as a foreign exchange trader at Barclays from January 2011 to October 2012. The FRB alleged that Mr. Weston discussed trading around certain currency benchmarks, or "fixes," with employees at other organizations. Mr. Weston consented to the Order.

In 2015, Barclays agreed to pay a $342 million fine as a result of misconduct of foreign exchange traders.