Barclays to pay up in foreign exchange trading rigging charges
(Reuters) — Barclays PLC will pay an additional $150 million to New York State's financial regulator to resolve allegations that it rigged foreign exchange trading by putting the bank's interests ahead of clients', the regulator said on Wednesday.
The British bank is also terminating a global electronic trading head for foreign exchange-related misconduct, the New York Department of Financial Services (NYDFS) said. The trading head's identity was unclear.
The penalty will be reflected in Barclays' fourth quarter 2015 results, the company said.
Barclays, in some instances, used a feature called "Last Look" on its forex trading platform to automatically reject client orders that would be unprofitable for the bank because of price swings in milliseconds-long hold periods the bank imposed after the trades were placed.
Barclays, however, did not disclose to clients that the trades were being rejected, but instead cited technical issues or gave vague responses, NYDFS said.
The penalty followed another by NYDFS against Barclays in May, bringing the penalties imposed by the regulator against the bank for forex-related conduct to $635 million.
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