DOJ faces opposition to request for additional stay in Forex benchmark rate manipulation lawsuit

Maria Nikolova

The continuance of the stay has been almost two years, the plaintiffs in a lawsuit targeting major banks like JPMorgan and Citi note.

Further to the most recent request by the United States Department of Justice (DOJ) for an additional stay in a Forex benchmark rate manipulation lawsuit targeting major banks like HSBC, Citi and JPMorgan, the plaintiffs have reacted by opposing the request.

The relevant documents were filed with the New York Southern District Court on Wednesday, December 19, 2018.

Let’s recall that the lawsuit, captioned Nypl v. JP Morgan Chase & Co. et al (1:15-cv-09300), was brought on behalf of a putative class of consumers and end-user businesses alleging that they paid inflated Forex rates caused by an alleged conspiracy among the defendant banks to fix prices of FX benchmark rates in violation of Section 1 of the Sherman Antitrust Act, 15 U.S.C. sec. 1 et seq.

Under the terms of the stay granted in June, depositions and interviews of current and former employees of Citibank, JPMorgan Chase, Barclays, RBS, UBS, BNP Paribas, and HSBC, are stayed. The stay bars depositions of signatories to the May 2015 corporate plea agreements, which plaintiff counsel in the case at hand has proposed to take.

In their response filed on Wednesday, the plaintiffs oppose the continuance of the stay for an additional three months prohibiting them from taking the depositions of the signatories of the guilty Plea Agreements or “another witness competent to testify to the substance of the plea at trial.”

The plaintiffs note that the continuance of the stay prohibiting them from taking these depositions has been almost two years, and will be more than two years if the stay is continued. On at least seven occasions, the DOJ has sought the continuance of the stay in increments of three months, and once for six months, on the basis that the depositions would somehow interfere with the DOJ’s prosecution of its criminal cases.

The plaintiffs argue that the circumstances have substantially changed. In addition to the fact that the Plea Agreements specifically include and require restitution, the DOJ has concluded its trial and prosecution of the principal individuals.

According to the plaintiffs, they have been and will continue to be substantially and unjustifiably prejudiced if the stay is continued yet again.

Read this next

Retail FX

Finalto sweetens offering for African traders with localized FX pairs

Finalto, the financial trading division of Gopher Investments, announced today that it has extended its offering with inclusion of a number of African Pairs to its trading platforms.

Digital Assets

BitMEX secures OAM registration to operate in Italy

Crypto exchange BitMEX has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX

FlexTrade integrates Glimpse’s post-trade bond execution data

“Looking further ahead, this integration also presents multiple opportunities for how fixed-income traders could leverage the trading data. For example, traders could tap Glimpse data as an input to AI-driven automation workflow strategies in the future.”

Industry News

FINRA fines UBS $2.5m for Reg SHO violations and supervisory failures

FINRA has fined UBS $2.5 million for Reg SHO violations and supervisory failures spanning a period of nine years.

Digital Assets

Bitfinex Pay launches feature that minimizes volatility risk

The currency conversion will take place every five minutes on any amount above $10.

Digital Assets

Mastercard launches Crypto Secure for risk assessment in digital asset space

“Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”

Retail FX

VT Markets wins 4 more awards including Best Forex Mobile App Global 2022

“Over the past few months, we have noticed a huge spike in downloads and daily active users on the VT Markets App. Our clients can trade multiple asset classes with ultra-low spreads, and access timely market news on our mobile app.”

Institutional FX

Blue Ocean ATS enhances price discovery and liquidity for after hours US stock trading

Liquidity and price discovery, missing from previous overnight trading solutions, are now possible utilizing the TNS network and managed service platform. Security of the private network and its access to all public clouds, uniformity of compliance and regulatory oversight, redundancy and recovery capabilities, plus the localized customer service around the world made TNS the best candidate for this major step in Blue Ocean Technologies’ growth.

Executive Moves, Retail FX

Equiti Group wins CySEC license to expand into Europe

“Regulation and good governance have always been and will continue to be a key part of Equiti’s business model.”