New York State Superintendent of Financial Services may exclude electronic trades from FX deals
New York State Superintendent of Financial Services Benjamin Lawsky said evaluations of electronic trading may hold up foreign-exchange settlements for certain banks.
Mr. Lawsky, speaking at a Dow Jones risk and compliance conference Tuesday, said it could take the Department of Financial Services months to finish the electronic-trading focus on Barclays PLC and Deutsche Bank AG.
Mr. Lawsky said it may be worthwhile to carve electronic trading out of the foreign-exchange settlements for his portion of the negotiations with those banks.
Several banks have negotiated for months over alleged manipulation of currencies. This isn’t the first time Mr. Lawsky’s agency, the Deparment of Financial Services, had held up Barclays’ settlement, people familiar with the matter have said.
Barclays wasn’t included in a November settlement with several regulators and banks. The Justice Department is still in talks on settlements with several banks.
The Department of Financial Services put monitors in Barclays and Deutsche Bank months ago and found the bulk of trading is done electronically.
“I don’t think DFS is in a position to settle these matters until it is done with electronic trading or if electronic trading was carved out of settlements,” Mr. Lawsky said. “Active monitors are in there right now, there’s a lot of data.”
He said he hopes the settlements will occur this year.
Source: MarketWatch – Lawsky may exclude electronic trades from FX deals
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