HSBC currency traders in London have been accused of routinely fronting run client orders for extra profits as part of a “blatant and indefensible” fraud by investment manager ECU lawyers.
The closing statement comments by lawyers for ECU, which is suing HSBC for currency trades made over 15 years ago, marked the end of a seven-week trial in London’s High Court yesterday.
The trial is only the latest development in a 10-year-old global currency trading scandal which has to date cost HSBC over $600m (£433m) in regulatory fines.
ECU Group have claimed that FX traders at HSBC misused confidential information about its trades for their own profit between 2004 and 2006. The currency manager have identified 52 transactions during those two years.
At the time of the trades, ECU was a client of the London-listed bank.
Richard Lissack QC, counsel for ECU, has reportedly said his client had “smoking gun evidence” that currency traders at HSBC “widely and routinely” attempted to profit from client orders.
A spokesperson for HSBC said: “We are defending the claim and cannot comment further on ongoing legal proceedings”.
It is understood that the trial will conclude on Thursday and a judgement is expected later in the year.