NY regulator probing Barclays, Deutsche Bank's FX algorithm

(MENAFN- The Peninsula)  The New York banking regulator is investigating if Deutsche Bank and Barclays Plc used algorithms on their trading platforms to manipulate foreign exchange rates, a source with direct knowledge of the matter said. Benjamin Lawsky, the head of New York's Department of Financial Services (DFS), has ordered a monitor to be installed at Deutsche Bank and already has one in place at Barclays - a move that will allow him to collect greater evidence of alleged manipulation, said the source who did not want to be named. Deutsche Bank spokeswoman Renee Calabro declined to comment but cited an earlier statement on the probes. Last month, regulators fined six major banks a total of $4.3bn for failing to stop traders from trying to manipulate the foreign exchange market, following a yearlong global investigation.