NY probing Deutsche Bank, Barclays' FX algorithms: source

New York

NEW York regulators have found evidence that Barclays Plc and Deutsche Bank AG may have used algorithms on their trading platforms to manipulate foreign exchange rates, a person with knowledge of the investigation said.

The practice suggests that there may be a systemic problem involving automated tools that goes beyond individuals colluding to rig currency benchmarks and take advantage of less sophisticated clients.

The algorithms' use is being scrut…