Ex-HSBC forex trader claims client was 'treated fairly'

The top HSBC trader accused of turning an illicit profit from a $3.5bn currency deal has acknowledged he was “surprised” by how well the bank did from the transaction but said its client was treated fairly.

Mark Johnson, the bank’s former head of global forex cash trading, was giving evidence on Wednesday at his trial over charges he exploited confidential information from Cairn Energy, the UK oil and gas company.

Cairn hired HSBC to convert the proceeds of an asset sale in India. US prosecutors argue Mr Johnson schemed to capitalise on an expected rise in the pound by buying sterling ahead of the transaction in 2011, netting the bank millions of dollars.

The British citizen told jurors at the court in New York that the bank followed common practice by “pre-hedging” the deal, adding it was “legitimate and appropriate”.

Asked by his attorney what he made of the outcome of the deal, he responded: “I was surprised. It was a lot better than expected outcome for HSBC, but I felt it was fair all round.”

“For the risk that HSBC took, the outcome was fair,” he added.

The trial continues.

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