Encourage holidays to avoid Soc Gen repeat - FSA

This would enable firms to discover any inappropriate activity in the trader’s absence and could also act as a preventative measure. The proposal is part of the regulator’s 25th Market Watch, which outlines measures firms should take when reviewing their systems and controls to protect them against rogue trader risk. It says front office staff should be separate to the mid and back office and suggests firms should use suspense accounts and have appropriate IT precautions in place. On 24 January, SG announced it had discovered unauthorised open futures positions of about €50bn on three Eu...