New York Times: Deutsche Bank to face British lawsuit on Forex high-frequency trading price manipulation

A report from Jack Ewing of the New York Times states that “already troubled by recent lawsuits and official investigations, Deutsche Bank (NYSE:DB) is facing another challenge – it’s about to be sued in British court for using high-speed trading software.”

  • That lawsuit asserts the lender used the trading platform known as Autobahn to take advantage of millisecond changes in exchange rates to give clients worse prices than they were entitled to.
  • Deutsche Bank has denied the claims, saying “we disagree with the allegations and will be defending ourselves in court.”
  • The lawsuit is to be filed later this year on behalf of companies, investors and even some central banks that frequently buy and sell currencies.

Deutsche Bank was one of many banks who was embroiled in 2014 with the currency rate benchmark rigging scandal, the Frankfurt based bank actually received the largest fine in CFTC history so this is an unwelcome development if the charges are true for big banks to once again breach trust and take advantage of clients.

Autobahn is DB’s in-house trading platform which features the following:

– Access via the App Market along with 100+ Apps
– Voice & E blotter
– NDF Fast Order functionality
– Tradable Streaming NDF Swaps
– Enhanced Orders & Algos
– Option and Swap Axes

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