The FCA has banned and fined a former Deutsche Bank short-term interest rate derivatives trader.

The trader, Guillaume Adolph, was given a £180,000 fine.

Mr Adolph traded products referenced to CHF (Swiss Franc) and JPY (Japanese Yen) LIBOR. For a period of time, Mr Adolph acted as the primary JPY LIBOR submitter for Deutsche.

Mark Steward, director of enforcement and market oversight at the FCA, said: “Mr Adolph improperly influenced several of Deutsche’s LIBOR submissions in disregard of standards governing LIBOR submissions. 

FCA bans ex-Deutsche Bank trader

The FCA has banned a former Deutsche Bank short-term interest rate derivatives trader.

The trader, Guillaume Adolph, has also been handed a £180,000 fine.

Mr Adolph traded products referenced to CHF (Swiss Franc) and JPY (Japanese Yen) LIBOR. For a period of time, Mr Adolph acted as the primary JPY LIBOR submitter for Deutsche.

Mark Steward, director of enforcement and market oversight at the FCA, said: “Mr Adolph improperly influenced several of Deutsche’s LIBOR submissions in disregard of standards governing LIBOR submissions. 

“Mr Adolph’s misconduct threatened the integrity of important benchmarks. He should have no further role in the financial services industry.”

The FCA found that between 25 July 2008 and 11 March 2010, Mr Adolph:

made requests to Deutsche’s CHF LIBOR Submitters to adjust their submissions to benefit Mr Adolph’s Trading Positions;
took his own trading positions into account when acting as Deutsche’s primary JPY LIBOR submitter; and
improperly agreed with a trader at another LIBOR panel bank to make JPY LIBOR submissions which took into account that trader’s requests.
The FCA has found that Mr Adolph “closed his mind to the risk that these actions were improper”. 

An FCA statement read: “He was also knowingly concerned in Deutsche’s failure to observe proper standards of market conduct.   

“Accordingly, the FCA has determined that he is not a fit and proper person to perform any regulated financial activity. On 21 January 2014, the FCA issued Mr Adolph with a Warning Notice, but proceedings were stayed due to the ongoing criminal investigation of the Serious Fraud Office into certain individuals who formerly worked at Deutsche Bank.”

“Mr Adolph’s misconduct threatened the integrity of important benchmarks. He should have no further role in the financial services industry.”

The FCA found that between 25 July 2008 and 11 March 2010, Mr Adolph:

made requests to Deutsche’s CHF LIBOR Submitters to adjust their submissions to benefit Mr Adolph’s Trading Positions;
took his own trading positions into account when acting as Deutsche’s primary JPY LIBOR submitter; and
improperly agreed with a trader at another LIBOR panel bank to make JPY LIBOR submissions which took into account that trader’s requests.
The FCA has found that Mr Adolph “closed his mind to the risk that these actions were improper”. 

An FCA statement read: “He was also knowingly concerned in Deutsche’s failure to observe proper standards of market conduct.   

“Accordingly, the FCA has determined that he is not a fit and proper person to perform any regulated financial activity. On 21 January 2014, the FCA issued Mr Adolph with a Warning Notice, but proceedings were stayed due to the ongoing criminal investigation of the Serious Fraud Office into certain individuals who formerly worked at Deutsche Bank.”