The arrest of Glen Point Capital co-founder Neil Phillips for alleged foreign-exchange market manipulation threatened to ripple across the hedge fund industry as another firm suspended staffers who previously worked with him. Phillips, 52, was arrested in Spain on a request from the US earlier this week, federal prosecutors in New York said Thursday in a statement.
Dozens of banks and traders have been accused of rigging markets including interest rates and precious metals, and even lying to customers about the prices of asset-backed securities. Option trigger According to prosecutors, Phillips’s hedge fund bought a digital option for the dollar-rand currency pair in late October 2017 that was set to expire on January 2, 2018. The option had a notional value of $20 million and a barrier rate of R12.