Westpac Banking Corp's influential money markets trader Colin Roden has quietly changed roles ahead of the bank's BBSW stoush with the corporate regulator kicking off in earnest.
Roden who goes by the nickname in financial market circles "The Rat," has moved to a strategic advisory role within the treasury division. That largely takes him away from day-to-day trading activities.
Street Talk understands Roden will remain a managing director within treasury while Daniel Park picks up trading responsibility within the unit in his role as managing director, markets, risk and liquidity.
Roden was considered the master of the short-term market – but was also among the best paid treasury bosses among his peers and within Westpac's broader executive ranks.
The treasury team is responsible for funding the operations of the bank – sourcing deposits, bills and bonds – to finance mortgages and corporate loans.
A Westpac spokeswoman confirmed Roden's change of role on Thursday. "Col continues to work at Westpac advising on strategic issues. He remains a valued employee of the group," she said.
Roden is also on extended leave until April as he recovers from a leg injury. He has worked at Westpac for almost 20 years and become the most senior trader in interest rate markets.
His communications were among those littered through the corporate regulator's case against Westpac.
It is set to be a mammoth fight for both sides.
Federal Court Justice Jonathan Beach will hear the matter in four phases from September 25 in a hard-fought battle, which has seen the banks defend the regulator's claims against them.
ANZ Banking Group and National Australia Bank are also entangled in the court action.
The Australian Securities and Investments Commission is seeking up to $112 million in fines.
The BBSW is the Australian debt market's main benchmark rate, which means it is used as a reference for pricing hundreds of billions of dollars of bonds, derivative contracts and loans.
In the case against Westpac, ASIC presented one instance where the bank had a "short" exposure to an interest rate setting of $14 billion on April 6, 2010. The short exposure meant that Westpac would make money if the bank bill swap rate was set lower than expected but lose money if the rate increased.
