By Karen Freifeld
NEW YORK, Oct 5 (Reuters) - New York's banking regulator hasquestioned dozens of traders and executives at Credit SuisseGroup AG, Barclays, Deutsche Bank and other banks about whether their electronic foreign exchangetrading platforms were rigged, according to a person familiarwith the matter.
The interviews, which have taken place over recent months,provide evidence the latest probe of major banks over foreignexchange rate manipulation is heating up. The questioning hasbeen conducted by lawyers at New York's Department of FinancialServices.
A spokesperson for the New York banking regulator declinedto comment. Representatives of Credit Suisse, Barclays andDeutsche had no immediate comment.
Seven banks have already paid over $10 billion toauthorities in the U.S. and Europe for failing to stop traderson the spot market from trying to rig foreign exchange rates,with some pleading guilty to criminal charges.
But, while spot trading probes were resolved, investigationsof possible currency manipulation through electronic platformscontinued.
Barclays' consent order with New York in May resolved itsattempts to manipulate spot trading to benefit its positions,for instance, but explicitly did not release claims concerningelectronic systems used in FX trading.
New York has been investigating whether Barclays andDeutsche Bank used algorithms on their trading platforms tofront-run or otherwise manipulate foreign exchange rates sincelast year, sources have told Reuters.
New York also sent subpoenas to Credit Suisse, BNP Paribas, Goldman Sachs Group Inc and Societe Generale, sources have told Reuters. nL4N0VK61V
People familiar with the probe have described a latencyperiod between the time an offer is floated and accepted, andquestioned whether banks were gaming clients during that time.
The U.S. Department of Justice has a parallel electronictrading probe.
A Justice Department spokesman declined to comment on thestatus of that probe.
In May, Citigroup Inc, JPMorgan Chase & Co,Barclays and Royal Bank of Scotland Plc pleaded guiltyto conspiring to manipulate the price of U.S. dollars and eurosexchanged in the spot trading market.
UBS AG pleaded guilty a different charge inconnection with the probe, and Bank of America Corp wasfined but avoided a guilty plea in connection with its traders'actions.
Together, the banks were hit with penalties of nearly $6billion, on top of fines of $4.3 billion levied by Britain'sFinancial Conduct Authority and other regulators against sixbanks, including HSBC Holdings Plc, in November. (Reporting By Karen Freifeld; Editing by Christian Plumb)