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US: New York to probe Barclays forex algorithm

By  |  December 11, 2014

New York officials are readying an investigation into Barclays and Deutsche Bank on suspicion they used an algorithm to manipulate the foreign exchange benchmark, according to an unnamed source.

Reports say the allegations suggest a calculated, methodical process of forex rate-rigging.

According to the source, the New York Department of Financial Services is probing the use of certain algorithms by both banks, though reports say the case does not necessarily mean there is a link between Barclays’ and Deutsche Bank’s business practices.

According to reports, DFS Superintendent Benjamin Lawsky has ordered Deutsche Bank to attain a third-party monitor; one is already in place at Barclays.

The two lenders were not among the six banks that had reached settlement agreements with authorities in the US, UK and Switzerland last month. Combined, those banks paid $4.3 million in fines.

Full content: Businessweek

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