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Additional forex scandal fine for Barclays

November 18, 2015

The British bank is to pay $150 million in extra fines to New York's financial regulator over a forex trading scandal. Barclays has also agreed to fire a senior executive for foreign exchange-related misconduct.

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Barclays Logo
Image: Getty Images/AFP/L.Venance

New York regulators harve ordered Barclays to pay an additional 140 million euros ($150 million) penalty over allegations related to its automated electronic foreign exchange trading.

The Department of Financial Services says the misconduct concerns Barclays' "Last Look" system.

The British bank had agreed to part ways with its global head of electronic fixed income, currencies, and commodities automated flow trading.

US regulators say Barclays' system automatically rejected client orders that would be unprofitable for the bank because of price swings in milliseconds-long hold periods the bank imposed after trades were placed.

Second fine

But the lender did not disclose to clients that the trades were being rejected, but instead cited technical issues or gave vague responses, New York regulators said.

The settlement concerns trading conducted between 2009 and 2014 and the bank revised its "Last Look" feature last year and again in August 2015 after the regulator disputed its full compliance.

Barclays says the penalty will be reflected in its fourth-quarter results.

In May, the bank settled an enforcement case related to spot foreign exchange trading for the equivalent of 2.25 billion euros with US and New York authorities.

mm/bw (AP, Reuters)