JP Morgan Cuts its Stake in Plus500, Former Rabobank Employee Charged in NY Court

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JP Morgan Cuts its Stake in Plus500, Former Rabobank Employee Charged in NY CourtJP Morgan has significantly reduced its stake in publicly-listed retail Forex broker Plus500, according to filings with the London Stock Exchange. JP Morgan cut its shareholding to less than 10 percent.

JP Morgan recently increased its interest in Plus500 to 14 percent in the summer. The scenario is unique, as it is rare to find a global bank taking a large stake in a retail FX broker or even develop an interest in it. Other than Plus500 being a lean, efficient and profitable firm, it is hard to think of any other factors that may have prompted JP Morgan to invest in the firm.

Given the fact that Plus500 shares recently surged 51 percent after the release of its second quarter 2014 results this month, we can speculate JP Morgan is simply moving around its stock in order to profit from disposing shares at high prices. The bank now owns 12,222,216 Plus500 shares after reducing its stake, with the shares currently retailing at 512 pence, up from Monday’s close of 505.00 pence.

Meanwhile, a former trader at Rabobank Group NV pleaded guilty to charges of manipulating the benchmark Libor interest rate. Paul Robson, a British citizen who specialized in trading the yen, was charged in a New York federal court on charges of conspiracy to commit wire fraud and bank fraud by fixing yen Libor, reported the Wall Street Journal, citing the U.S. Justice Department.

Robson is the second ex-Rabobank trader to be charged after Takayuki Kagami who was also charged on the similar counts in June. Rabobank reached a $1.07 billion settlement with global regulators with regard to the Libor investigation. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com