Vedder Thinking | News Sam Tyfield Weighs in on Bank Trading Investigations in GIR Article
Sam Tyfield, a Partner in Vedder Price's London office and member of the firm's Investment Services and Finance & Transactions groups, was quoted in the article "UBS and Deutsche Bank Reveal Multiple Trading Investigations" by Global Investigation Review (GIR), an online forum reporting on news pertaining to business law and international investigations.
Recently, UBS and Deutsche Bank have come under fire due to their controversial dark pool trading platforms. Since 2012, UBS has been under investigation by U.S. authorities such as the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the New York Attorney General, all of which are examining how UBS routes securities through its dark pool and how trades are executed. Deutsche Bank, which has its own high-frequency trading (HFT) team, has also been receiving inquiries from various regulatory authorities regarding the bank’s trading practices.
Mr. Tyfield addresses the difficulties that high-frequency traders face when trying to identify what they are being accused of, stating, "The enforcement agencies have to identify and quantify harm and then show who suffered it but this is not straightforward." He later poses important questions that authorities have yet to answer, "Were investors deliberately excluded from the advantages enjoyed by high-frequency traders or were those advantages simply a product of the technology HFT firms had? Were investors aware of the advantages enjoyed by high-frequency traders and if not can you then argue that HFTs were acting on inside information?"
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