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Financial Firms Expect More Rogue Trading

In the aftermath of the SocGen scandal, a new study has found that 75% of investment firms expect another $100 million rogue trading loss to be uncovered at a large financial institution within the next 12 months.

In the aftermath of the SocGen scandal, a new study has found that 75% of investment firms expect another $100 million rogue trading loss to be uncovered at a large financial institution within the next 12 months.According to the report compiled by risk management software provider Actimize, 50 percent of respondents said rogue trading activities -- ranging from housands to millions of dollars -- are unreported every year at their firms.

Further, 24 percent of respondents said they have experienced a case of trading fraud at their firms in the last 12 months, while 44 percent confirmed a case of employee fraud had occurred in the same time period.

Meanwhile, 85% of firms said they intend to modify their internal risk management controls, while 75% plan to change their strategy and 60% have already created task forces to address rogue trading.

Actimize said 25 compliance experts at firms primarily located in North America and Europe were interviewed for the report. Forty-eight percent of respondents came from firms with assets of $100 billion and above.In the aftermath of the SocGen scandal, a new study has found that 75% of investment firms expect another $100 million rogue trading loss to be uncovered at a large financial institution within the next 12 months. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

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