Manipulation - Trader Reveals Tough Times On The Trading Floor

Tokyo Working

One particularly tough trading day in the summer of 2007, Eddy Takata, then a derivatives trader with Deutsche Bank in Tokyo, threw up his arms in frustration and shouted, 'Manipulation!'

The New York Times reports that a major interest rate had again moved in favor of a rival trader at UBS, a relative newcomer to Tokyo named Tom Hayes.

The handful of traders battling it out in the Tokyo market had started to sense Hayes was rewarded a little too often for his oversize risks, according to a book by Tanaka published on Tuesday.

Hayes is now a central figure in a global investigation into rate manipulation. American authorities have accused him of colluding with rivals as part of a vast conspiracy to report false rates to bolster earnings.

In his book, whose title loosely translates to Market Manipulation and Deceit, Takata, who traded derivatives in Tokyo for 18 years, paints a picture of a fast-moving, high-stakes, ego-fueled market controlled by a handful of traders. The champagne flowed when profit was strong, he said, but heads rolled over a single miscalculation. He also describes the power relationships between high-rolling traders and their colleagues who set the rates.

Hit the link below to access the complete Bloomberg article:

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