Hausfeld Spars With Former Partners in Forex Litigation


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Cohen Milstein Sellers & Toll lost an early round Monday in a spat with Hausfeld LLP and another plaintiffs firm over who should lead part of a sprawling antitrust litigation over alleged manipulation of foreign exchange rates. But the dispute isn’t fully resolved, and judging by a snippy letter Cohen Milstein filed last week in Manhattan federal court, there could be plenty of acrimony ahead.

In a letter Friday to U.S. District Judge Lorna Schofield in Manhattan, Cohen Milstein accused lawyers at Hausfeld and Scott + Scott of engaging in deception on par with that of former President Richard Nixon. The letter came as Schofield considers Hausfeld’s and Scott + Scott’s motion to serve as co-lead plaintiffs counsel in one piece of the putative class action, which accuses a dozen banks of widespread misconduct in the $5 trillion-per-day foreign exchange market.

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Exchanges overtake FX trading platforms

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One visible sign of the change in the structure of G20 countries’ FX market is the takeover of a major electronic FX trading platform by an exchange, as it emerged over the weekend. This takeover is causing the imagination to take flight.

Is it possible that in the future foreign currency will no longer be traded OTC but on regulated exchanges similar to equities?

There are two major differences between the two financial instruments: 

Due to the large number of equities traded, the liquidity of each of them is low, and bid ask spreads are higher – also compared with volatility. The bundling of liquidity in central locations therefore makes sense – much more so than with G10 currencies.

  • Anyone trading equities does this almost exclusively to make a profit in this market. Many participants in the G20 FX market do so for other reasons. They trade foreign currency so as to be able to sell or buy goods, services or securities denominated in other currencies rather than with the aim of making speculative profits on the FX market. As a result the structure of the participants is more heterogeneous. A one-fits-all solution is much more difficult to obtain. 
  • What is decisive for the FX market is whether it constantly has sufficient liquidity. This has become a problem since banks have been prevented from holding significant speculative positions. They no longer offer a more or less stable supply of liquidity.

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    Forex Trading Guide: U.K. June Retail Sales Report

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    News traders, huddle up! Aside from the central bank events you can trade this week, we’ve got another potential market-mover in the form of the U.K. retail sales release. This report is due on Thursday 8:30 am GMT so y’all better check out this Forex Trading Guide to get some ideas on how to make profits off this event.

    What is this report all about?

    The U.K. retail sales report, which is released by the Office for National Statistics (ONS), indicates the change in the total value of inflation-adjusted sales at the retail level. Say what?!
    For the newbies out there, this basically means that the folks over at the ONS add up the purchases of tea cups, scones, Royal Family postcards, Harry Potter studio tour tickets, and all other goods and services sold in the U.K. for the month and compare it to previous periods. In doing so, they’re able to get a pretty good picture of consumer spending, which actually accounts for a hefty chunk of overall economic growth.

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