Court ruling challenges ‘fiduciary’ role for pre-hedging
The overturning of Mark Johnson’s fraud conviction in July could indicate that dealers do not owe fiduciary duties to their counterparties when pre-hedging large transactions, according to lawyers.
Johnson, former head of foreign exchange cash trading at HSBC, was accused of wire fraud involving Scottish energy company Cairn over a $3.5 billion dollar/sterling transaction. In the 2017 judgment, the government argued Johnson intentionally ramped up the fix pricing of the pound, therefore failing
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