Financial regulators are still investigating the trading tasks of various global lenders, and also their function in controlling the foreign exchange benchmarks. The most recent investigation includes Barclays PLC (ADR) (NYSE: BCS) and Deutsche Bank AG (NYSE: DB), which according on regulators have actually been using algorithms to carry out trade in international currency markets.

A person familiar with the matter said that this trading misbehavior may not be limited to simply these 2 banks. This could be an industry-wide problem that should be looked into. Making use of modern technology to manipulate rates and trades is past exactly what the regulators were expecting to find. It also puts naive investors & traders at a serious disadvantage.

This person, maintaining his anonymity, additionally said that the log technique is presently under examination by the New York Department of Financial Services. Nonetheless, until now, the investigators have not come across any piece of evidence indicating a connection between the 2 banks under question. These algorithms were dental implanted in the BARX trading platform and Autobahn trading system of Barclays & Deutsche, respectively.

One point to remember of is that these 2 lenders were not subject to the $4.3 billion regulatory imposed on November 14by various international regulatory bodies, consisting of US Commodity Futures Trading Commission, Office of Comptroller of the Currency (OCC), UK's Financial Conduct Authority (FCA), & Swiss Financial Market Supervisory Authority (FINMA). The 6 lenders which were penalized were the Royal Bank of Scotland Team PLC (NYSE: RBS), HSBC Holdings plc (ADR) (NYSE: HSBC), Citigroup Inc (NYSE: C), JPMorgan Chase & Co. (NYSE: JPM), UBS AG (NYSE: OUBS), & Bank of America Corp (NYSE: BAC).

Following the news of fines, the FCA instructed over 30 banking institutions to conduct aggressive restructuring schemes in terms of operations, & management: Deutsche Bank was among them.

People having knowledge of the matter revealed that, following DFS Superintendent Benjamin Lawsky's statement, Barclays withdrew from negotiation talks with regulators at the last minute. Mr. Lawsky said that the regulators were going too simple on the defaulting lending.