In other news, SGX buys MaxxTrader, RBC is hiring, the SEC makes whistleblower payments, and SmartStream has a new head of managed services sales.
Justice Department Sends Back Misappropriated Funds
U.S. Justice Department officials report that they have returned “an additional $452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over $1.2 billion.”
The repatriation of the funds from the former 1MDB investment development fund follows a scandal in that involved money “laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg,” according to court documents and officials (“Goldman Sachs Admits Guilt in Foreign Bribery Case,” https://bit.ly/3mhVag2 ) .
“As alleged in the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho (aka Jho Low), through a criminal scheme involving international money laundering and embezzlement. Some of the embezzlement proceeds were also allegedly used to pay bribes,” according to the Justice Department. Jho Low’s whereabouts remain unknown.
“1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were taken and spent on a wide variety of extravagant items,” according to Justice Department officials, who add that the FBI’s International Corruption Squads in New York and Los Angeles, and the IRS-Criminal Investigation staff are still trying to find out where the funds went.
SGX Acquires MaxxTrader from FlexTrade
The Si
ngapore Exchange (SGX), a venue for multiple assets and foreign exchange (FX) derivatives, has acquired the single source and direct-to-market FX trading platform, MaxxTrader, from FlexTrade Systems, SGX officials say.
“SGX will acquire MaxxTrader from FlexTrade Systems … for a cash consideration of approximately US$125 million. The acquisition is expected to be completed by December 2021 and will accelerate SGX’s plan to build an integrated FX ecosystem and marketplace that facilitates global access to OTC [over-the-counter] and on-exchange currency derivatives,” according to SGX officials.
The Singapore-based MaxxTrader business offers FX pricing and risk solutions for sell-side institutions such as banks and broker-dealers, and functions as a multi-dealer platform for hedge funds, officials say.
“MaxxTrader’s strong sell-side client base complements the buy-side clientele of BidFX, a leading cloud-based provider of electronic FX trading solutions which SGX acquired last year. Together, these acquisitions form part of SGX’s multi-phase strategy in building an integrated Asian FX marketplace for global investors,” officials add.
“SGX is acquiring the MaxxTrader platform, technology and staff who run the MaxxTrader business,” an SGX spokesperson tells FTF News. “It is business as usual for all other FlexTrade staff. Post-acquisition, MaxxTrader will be part of the SGX group of companies and will play a critical role in SGX’s build out of an electronic communication network based in Singapore. This is part of SGX’s plan in building a leading FX marketplace, that is Asia’s largest one-stop venue for international FX OTC and futures participants.”
RBC to Launch Calgary Innovation Hub
The Royal Bank of Canada (RBC) reports that it plans to create 300 technology jobs at a new Calgary Innovation Hub.
The Innovation Hub is scheduled to launch this coming September.
The hub is meant to “help grow the city’s tech ecosystem with meaningful tech jobs in high-demand areas such as artificial intelligence, data engineering, full stack agile software delivery, site reliability engineering, machine learning and data analytics, among other skills,” RBC officials say in a statement.
The new tech center’s will be in addition to the “approximately 1,500 RBC employees in Calgary and more than 4,000 in Alberta who currently support its wealth management, capital markets and personal and commercial banking businesses,” the statement notes.
Companies and institutions interested in joining the RBC at the Calgary Innovation Hub can find more information at calgaryinnovationhub@rbc.com .
Individuals who would like to apply for a job there can find more information at https://jobs.rbc.com/calgaryinnovationhub .
The Royal Bank of Canada is Canada’s largest bank, with more than 86,000 employees. It tallies approximately 17 million clients in Canada, the U.S. and 27 other countries. — L.CH
Latest SEC Whistleblower Awards: More Than $4 Million
The Securities and Exchange Commission (SEC) has reported awarding more than $4 million to four whistleblowers.
The whistleblowers, whose identities remain confidential under provisions of the relevant legislation, provided “information and assistance in two separate enforcement proceedings.”
In the first, the SEC handed out “more than $2 million” to someone who came forward with “information that resulted in SEC staff initiating an investigation, as well as ongoing assistance that included participating in multiple interviews and identifying key individuals and entities. The SEC also awarded more than $150,000 to another whistleblower, whose information prompted SEC staff to expand its investigation into other alleged conduct at the relevant company.”
In the second order, the SEC handed out “more than $1.1 million” to a person who “reported misconduct internally and was the first to alert the SEC to the violations. The SEC also awarded another whistleblower more than $500,000. While the second whistleblower’s information was important, the first whistleblower’s information was more significant as it was broader and more timely submitted.”
The SEC points out that it has awarded approximately $946 million to 190 individuals since issuing its first award in 2012.
All award payments come from “an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.”
Awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million.
For more information or to begin the process of collecting your own award, go to www.sec.gov/whistleblower . — L.CH
SmartStream Hires Head of Managed Services Sales
Mark Morris
SmartStream Technologies, which characterizes itself as the financial transaction lifecycle management solutions provider, reports the appointment of Mark Morris as head of sales, managed services.
Morris is meant to “ deliver technology and operational expertise across functions including reconciliations, corporate actions, collateral management, cash and liquidity management, fees and expense management, and reference data.”
He is a veteran with more than 30 years of financial industry experience at “a number of investment banks, including NatWest Markets, Nomura and Commerzbank.”
Before SmartStream, he was at JDX Consulting and at TORI Global Management Consultants. He will report to Nick Smith, executive vice president, managed services. — L.CH
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