The New York Department of Financial Services is digging deeper in its Fx probe, following resolution of the spot trading investigation, into whether the operation of numerous bank electronic platforms may have harmed customers.
New York's banking regulator has questioned dozens of traders and executives at Credit Suisse Group AG, Barclays, Deutsche Bank and other banks about whether their electronic foreign exchange trading platforms were rigged, according to a person familiar with the matter. The interviews...provide evidence the latest probe of major banks over foreign exchange rate manipulation is heating up. But, while spot trading probes were resolved, investigations of possible currency manipulation through electronic platforms continued. New York has been investigating whether Barclays and Deutsche Bank used algorithms on their trading platforms to front-run or otherwise manipulate foreign exchange rates since last year, sources have told Reuters. People familiar with the probe have described a latency period between the time an offer is floated and accepted, and questioned whether banks were gaming clients during that time.