Michael Gibbens, Toronto-Dominion Bank’s global head of foreign exchange, is leaving the company for personal reasons, Canada’s largest bank by assets said.
Gibbens will be replaced by Michael Twaits, who will relocate from London to become the global head of foreign exchange and metals, said Laurrell Mohammed, a spokesman for TD. Twaits was formerly the international head of fixed income, he said. Gibbens has not disclosed his future plans to TD, according to Mohammed. He joined the company in 2002 as managing director of foreign exchange and head of global institutional sales in Toronto, the spokesman said. Gibbens could not be immediately reached for comment.
Gibbens oversaw the creation of a new method of calculating currency benchmarks that TD has offered to clients as an alternative to the WM/Reuters rates, which are used to value what Morningstar Inc. estimates is $3.6 trillion in assets globally. The WM/Reuters rates are being investigated by regulators around the world amid suspicion they have been manipulated.
The Reuters rates are calculated once a day for 160 currencies based on trades executed in a minute-long period called “the fix.” The method Gibbens developed with Paul Aston, TD’s head of quantitative and algorithmic solutions, is based on an average of trades throughout the day.
The large concentration of orders at the London fix distorts prices and allows the possibility for manipulation, while spreading out those orders helps solve both problems, Gibbens told Bloomberg News when the new product was offered in February.