BNY Mellon trader fired in conduct probe
Bank of New York Mellon fired a currency trader in London earlier this year for code of conduct violations it discovered during an internal review of its operations, according to a source familiar with the situation.
The bank reviewed its operations as regulators were examining possible collusion among currency traders at a number of large banks to manipulate the market. BNY Mellon was not among the six banks that agreed earlier this month to pay a combined $4.3 billion to settle the investigation by regulators in the United States, Britain and Switzerland into foreign currency manipulation.
The source, who spoke to the Tribune-Review on condition of anonymity, said there were no financial implications for BNY Mellon and the violations were reported to financial regulators. The violations were unrelated to the investigation by regulators into foreign currency market manipulation, the source said.
BNY Mellon, which has 7,600 workers in Pittsburgh, “can’t comment on internal matters involving individual employees,” Tim Steele, a spokesman in London said by email.
The trader, Jon Smailes, was terminated in May, the source said. Smailes was a senior-level trader who worked on BNY Mellon’s spot currency trading desk in London. He had been employed at BNY Mellon for more than 10 years, the source said. Smailes could not be reached for comment Wednesday.
The Financial Conduct Authority, the U.K. banking regulator, could not be reached late Wednesday afternoon to discuss the matter because the office had closed. A spokeswoman for the U.S. Securities and Exchange Commission declined to comment.
Earlier this month, HSBC Holdings, Royal Bank of Scotland Group, JPMorgan Chase, Citigroup Inc, UBS AG and Bank of America Corp. agreed to pay a financial penalty to settle allegations that traders at the banks were colluding to set benchmark currency rates.
Chris Fleisher is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or [email protected].