20 January, AtoZForex.com, Lagos – Deutsche bank now faces a new case of “taking undue advantage of smaller firms” in its execution of Foreign Exchange transactions, which is leading to another Deutsche Bank FX lawsuit, in addition to the multiple cases it already has at hand. A group of lawyers have spoken about their planned lawsuit against the firm for using high-speed trading software to rip off client in FX transactions.
Deutsche Bank FX lawsuit, which will be filed later this year on behalf of companies, investors and even some central banks that frequently buy and sell currencies is similar to an existing case against the bank, filed in New York last month by some of the same law firms. The lawyers claim that Deutsche used its “Autoban” software exploited millisecond changes in exchange rates to give clients worse prices than they were entitled to.
Deutsche Bank has denied any wrong doing in the case, saying on Monday that: “We disagree with the allegations and will be defending ourselves in court.”
A Berlin based lawyer by the name Christopher Rother, involved in the lawsuit against the bank said it is difficult to quantify he potential losses to clients as a result of this unfair advantage, stating that “I would say in the billions,”.
In the last year, the Deutsche has been severely hit with fines. Back in April 2015, it was levied $2.5 billion in penalties, in relation to its alleged involvement in the manipulation of global interest rates. In November, the bank also entered an agreement with US authorities to pay a fine of $258 million in connection with allegations that it dealt with countries subject to US sanctions, including Iran, Libya, Syria, Myanmar and Sudan.
Recently, Barclays bank was also hit with similar fines in relation to its use of “last look”. Barclays paid a fine of $100 million is in settlement of the “last look” issue.
This system is a stereotype of earlier systems where the time lag between order transfers between banks used to take time, therefore exposing the bank to price fluctuations. The Last look, on the other hand, maybe used on fairly to fill client orders at different prices to the banks advantage or cause requites of client orders.
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