Barclays Faces Another Forex-Related Lawsuit

An investment advisory firm has filed a lawsuit against Barclays for alleged losses suffered by its trading partners as a result of some of the bank’s practices on its foreign exchange Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

Reuters reports that Axiom Investment Advisors alleged that Barclays had on several occasions used a feature called 'Last Look' on its platform. This feature automatically rejects orders placed by clients if considered to be unprofitable for the bank due to price changes in the super shorthold periods after an order is placed, according to the New York Department of Financial Services (NYDFS).

Last Look of Resentment

Axiom said in the lawsuit filed with the federal court in Manhattan that it and other companies suffered damages because of the 'Last Look' feature, which caused the firm to end up getting a worse price for the trades it placed on Barclays’ platform because the initial contract price was unprofitable for the bank.

Just last week, the NYDFS hit Barclays with a $150-million fine for abusing the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, again via its online trading platform. According to the NYDFS in that case, Barclays had sought to benefit at the expense of clients and counterparties by manipulating its own internal systems and controls to gain an unfair advantage.