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Merrill Lynch is one of several brokerage firms that conducted trades on behalf of Yasuo Hamanaka, a Sumitomo copper dealer who was fired in June 1996 after it was revealed that he had lost $2.6 billion in off-the-book transactions over about 10 years.
Rochdale typically trades on behalf of clients.
Volkov resumed calling in mirror trades, on behalf of other counterparties.
Knight has become known for executing trades on behalf of retail brokers like TD Ameritrade and ETrade.
Linkbrokers, which was not named in the suit, executed high-volume trades on behalf of institutional customers, including hedge funds.
"Their business model has completely blurred the difference between executing trades on behalf of customers versus executing trades for themselves.
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Knight has focused more on trading on behalf of customers and is a public company.
Getco is also pushing to expand its business trading on behalf of clients.
They are trading on behalf of clients who have placed orders to buy and sell currencies.
Instead the exchange is making the money available to the market-making firms that traded on behalf of investors.
But the law goes on to provide exemptions for such things as "trading on behalf of customers," "risk-mitigating hedging activity" and "underwriting and market-making activities".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com