By Supriya Kurane
Dec 10 (Reuters) - The New York banking regulator isinvestigating if Deutsche Bank and Barclays Plc used algorithms on their trading platforms tomanipulate foreign exchange rates, a source with directknowledge of the matter told Reuters.
Benjamin Lawsky, the head of New York's Department ofFinancial Services (DFS), has ordered a monitor to be installedat Deutsche Bank and already has one in place at Barclays - amove that will allow him to collect greater evidence of allegedmanipulation, said the source who did not want to be named.
Deutsche Bank spokeswoman Renee Calabro declined to commentbut cited an earlier statement on the probes.
"Deutsche Bank has received requests for information fromregulatory authorities that are investigating trading in theforeign exchange market. The Bank is cooperating with thoseinvestigations," Calabro said, quoting the earlier statement.
Representatives at Barclays did not immediately respond toan email seeking comment outside regular business hours. A DFSspokesman declined to comment.
Last month, regulators fined six major banks a total of $4.3billion for failing to stop traders from trying to manipulatethe foreign exchange market, following a yearlong globalinvestigation. Deutsche Bank and Barclays were not among the sixbanks.
Lawsky, who started his probe into possible manipulation ofcurrency markets in February, chose not to coordinate asettlement with other regulators because he viewed those dealsas too weak, a source told Reuters last month, an indicationhe's likely to go after the banks later and demand largerpenalties.
Reuters reported last month that the civil settlementsstruck between six global banks and U.S. and UK authorities setthe stage for negotiations over related ongoing probes thatcould bear much more severe consequences. (Reporting by Supriya Kurane in Bengaluru; Editing by GopakumarWarrier)