Barclays linked to possible automated exchange rigging

Barclays linked to possible automated exchange...A US financial regulator is investigating the role of Barclays and Deutsche Bank in possible widespread manipulation of foreign exchange markets.

New York’s Department of Financial Services (DFS) claims that both banks may have made use of automated trading platforms to heavily influence the currency markets using specially developed algorithms.

Barclays and Deutsche Bank are already being investigated, alongside a number of institutions, for their roles in the foreign exchange market.

Benjamin Lawsky from the DFS believes the new evidence could suggest the problem could be more ingrained than previously thought.

Both banks opted not to be involved in a settlement claim with six other banks totalling £2.7 billion for similar concerns of UK, US and Swiss regulators.

The DFS is also reported to have raised concerns that the fines issues by UK-based regulator the Financial Conduct Authority were not substantial enough.

Both Barclays and the DFS refused to comment and Deutsche Bank said it was continuing to offer support to the foreign exchange investigations.

A statement from the bank explained: “Deutsche Bank has received requests for information from regulatory authorities that are investigating trading in the foreign exchange market. The Bank is cooperating with those investigations, and will take disciplinary action with regards to individuals if merited.”

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