FXC issues broker points rules

The Committee has been debating the topic since the FBI swooped on 47 traders as part of ‘Operation Wooden Nickel’, an investigation into a series of currency scams, last November (FX Week, November 24, 2003).

Broker points – the pips a broker may have to recoup on mis-matched trades – can arise legitimately, but in this case bank traders were alleged to be ‘cashing points’ – executing trades with brokers at loss-making rates for the bank – in return for cash.
Traders at JP Morgan Chase, UBS,