Barclays will pay an additional $150 million in a settlement with New York state’s banking regulator for manipulating foreign-exchange trading through the bank’s automated electronic system that allowed it to reject unprofitable trades.
The fine by the New York Department of Financial Services announced Wednesday is on top of a total of $1.4 billion the bank paid to regulators in May to settle charges of FX manipulation — $485 million to the NYDFS, $515 million to the Commodity Futures Trading Commission and £284 million ($432 million) to the U.K.’s Financial Conduct Authority.
In a news release announcing the latest fine, NYDFS said Barclays used its “last look” system “to automatically reject client orders that would be unprofitable for the bank because of subsequent price swings” during hold periods. It also said Barclays would not tell clients why it rejected those trades other than “citing technical issues or providing vague responses.”
The May deal didn’t preclude any further claims against Barclays.
NYDFS also ordered Barclays to terminate its managing director and global head of electronic fixed income, currencies and commodities automated flow trading. Neither the department nor Mark Lane, Barclays spokesman, would identify the person.
“Barclays continues to cooperate with other ongoing investigations and to manage related litigation risks as previously disclosed,” said a company statement provided by Mr. Lane.
