Two UBS Traders Said Left Firm In Midst Of Probe

The Wall Street Journal has reported that two senior UBS Investment Bank bond traders have left the firm amid a probe by US regulator The Securities and Exchange Commission (SEC) into alleged manipulation of the Treasury markets.

According to the newspaper, the traders, Philip Smith and Robert Fischetti, worked in the firm's Stamford office. This is an interesting development since the SEC has yet to complete its probe, and has not fingered any particular firm or individual and alleged wrongdoing.

As the newspaper says, the regulator is 'concerned that Treasury-securities prices were possibly being manipulated.....by traders controlling the supply of certain Treasury issues, making it hard for others to obtain them, and then profit by lending out those securities in the repo market'. The Journal also reported earlier this week that Credit Suisse trader, Thomas Brown, has left the firm after he came under scrutiny by regulators.

Officials from the Federal Reserve Bank of New York are said to be meeting with 22 bond traders early next week to discuss their concerns in this matter.

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