FCA bans ex-Martins broker Terry Farr

Maria Nikolova

Farr, who formerly worked as a broker and held the position of Manager on the JPY Desk at Martins, has been found to have arranged several wash trades.

The UK Financial Conduct Authority (FCA) today announces that it has banned former Martins Brokers (UK) Ltd (‘Martins’) broker Terry Farr from performing any function in relation to any regulated financial activity. The regulator explains that Mr Farr acted dishonestly and lacked integrity, and is not fit and proper to perform any function in relation to any regulated activity.

Mr Farr formerly worked as a broker and held the position of Manager on the Japanese Yen Desk at Martins. He arranged transactions in a range of JPY products, including cash, forwards and derivatives, between banks and other financial institutions.

The FCA has determined that between September 19, 2008 and August 25, 2009, Mr Farr arranged nine wash trades. The purpose of the wash trades was to obtain unwarranted brokerage payments for Martins with no legitimate commercial purpose.

Mr Farr has been found to have encouraged a trader at UBS to believe that Mr Farr was willing to attempt to influence the JPY LIBOR submissions of other banks at the trader’s request. In exchange, the trader entered into the wash trades to reward Mr Farr for his perceived assistance. The brokerage Martins received as a result of the wash trades was not for any form of legitimate service and was unrelated to any proper purpose for which brokerage payments may be made. Mr Farr was aware that the wash trades were improper but arranged them in any event and proactively sought to conceal them in his dealings with traders.

As a result of the wash trades, Martins received £258,151.09. Mr Farr knew that this increased the bonus pool available to him and his colleagues on the JPY Desk.

The FCA started its investigation into Mr Farr in 2011. However, the regulator suspended its investigation due to the criminal investigation and ensuing prosecution of Mr Farr by the Serious Fraud Office for alleged conspiracy to defraud in relation to the Yen LIBOR rate submissions. Mr Farr was acquitted at the conclusion of the trial on January 27, 2016.

Let’s recall that, in January 2015, the FCA fined and banned two former senior executives of Martins for compliance and cultural failings at the firm. David Caplin (former chief executive) was fined £210,000 and Jeremy Kraft (former compliance officer) was fined £105,000. This followed previous enforcement action against Martins: in 2014, the FCA fined Martins £630,000 for misconduct relating to the London Interbank Offered Rate (LIBOR).

Read this next

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

Technology

Polygon.io adds stock options APIs to market data platform that includes FX and Crypto

Polygon.io has launched a new set of stock options APIs to its entirely self-serve real-time data APIs, which includes stocks, crypto, forex, and options APIs free to use.

Market News

What’s in store for markets this week!

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable

Podcasts

FinanceFeeds Podcast Ep. #7: Exness’s Elena Krutova shares how to recruit the best talent in FX

FinanceFeeds is delighted to announce the release of the FinanceFeeds Podcast’s seventh episode featuring Elena Krutova, Chief People Officer of Exness, the renowned FX and CFD broker headquartered in Cyprus.

<