Former HSBC banker found guilty of fraud in the US

[Arbu]

http://www.bbc.co.uk/news/business-41728207

As a matter of interest, does anyone have an idea of how much a company converting $3.5Bn into Sterling would be likely to move the market? Sounds like Cairn was trying to do it all in one go, which I would guess is a bit rash.

 

[EnlightenedJoe]

The interbank market is supposed to transact trillions a day. 3 billion is small potatoes. the 8m HSBC front running profit shows it. Only part of that is from price move. The rest are fees.

 

[Arbu]

Clearly. The article says the 8m was from fees and front-running. But my question still stands.

 

[EnlightenedJoe]

3 billion in a 2000 billion market has minor impact. The small profit reflects that diminutive impact. Yes, the question stands, how many pence did the 3.5b move ? My guess is 3.56832 pence. Of course this is only a guess, a rough estimate.

 

[piphoe]

Yes, the question stands, how many pence did the 3.5b move ? My guess is 3.56832 pence.

?????

 

[EnlightenedJoe]

?????

Do you have a better guess ? Let's hear it.

 

[piphoe]

Do you have a better guess ? Let's hear it.

no. just your answer was ...precise to 5 decimal points? how did you arrive at it i was wondering?

 

[EnlightenedJoe]

no. just your answer was ...precise to 5 decimal points? how did you arrive at it i was wondering?

I just like to be precise even on an estimate. Just a habit.

 

[piphoe]

I just like to be precise even on an estimate. Just a habit.

ROFL :cheesy:

wait a sec...pence? how much is a pence?

 

[Arbu]

Someone here says it takes 1-200M to move EUR/USD 0.2%. Suggests 3.5B might move it 3.5-7%. Which is massive. Enough to make fundamentals and technical analysis irrelevant.

 

[FXX]

Someone here says it takes 1-200M to move EUR/USD 0.2%. Suggests 3.5B might move it 3.5-7%. Which is massive. Enough to make fundamentals and technical analysis irrelevant.

It would depend on liquidity

 

[Arbu]

It would depend on liquidity

Of course. What about in average liquidity, everything else being average too?

 

[FXX]

Of course. What about in average liquidity, everything else being average too?

average liquidity is not important.