National Australia Bank will reopen FX options trading next month, a year after a high-profile trading scandal forced it to close this business. Jeff Lee, global head of FX in Sydney, will spearhead the move. Lee worked as a consultant with the firm last year before joining in November and was previously a managing director in debt markets at Merrill Lynch in New York. "We have a more robust operating environment and a great team of people in place. This, coupled with ongoing client support, should see us quickly regain our broader FX market share," said Lee. For the effort, Clifford Bayne, FX options trader at ABN AMRO in Singapore, has joined as head of FX options for Australia in Sydney, while Andrew Clarke, who joined late last year from JPMorgan, heads FX options for Europe in London. Bayne and Clarke report to Lee.
The firm has also centralized all derivatives trading out of Sydney and recently relocated staff from Melbourne for the effort. Fidelma Ryan, spokeswoman in Melbourne, said, "We're streamlining this operation, placing us more in line with our peers." Trading will be located in Sydney, explained Ryan, but--as is the case with rival domestic houses--NAB will keep some marketers in Melbourne where the bank's headquarters are located.
The bank's FX options desk was shut down early last year after traders tried to conceal over AUD360 million (USD276.3 million) in trading losses (DW, 1/25/04). In the wake of the scandal and an investigation by the Australian Prudential Regulatory Authority, the bank has worked on complying with remedial measures addressed by the regulator. Ryan said the bank has stronger controls in place, such as a greater focus on monitoring trading operations.
