Deutsche Bank to Be Charged With Manipulating its Autobahn FX Platform
- German lender Deutsche Bank is set to be charged by a group of lawyers in the U.K.
With the bulk of the foreign exchange fixing charges being settled, Deutsche Bank is facing a different allegation in relation to its 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 business conduct. The German lender is set to be accused by a number of lawyers of manipulating its Autobahn electronic 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.
The bank is denying the allegations and is going to meet the challengers in court. In a statement the bank responded to the accusations: “We disagree with the allegations and will be defending ourselves in court.”
The news doesn’t come as a surprise: Deutsche Bank has already been charged last month for the same matter in the U.S. According to the allegations, the German lender used some sort of specially designed algorithms, which were delaying the execution of the given orders of its clients on the firm’s electronic trading platform Autobahn.
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US law firm Hausfeld, along with others, has already filed a case in a New York court on behalf of its client, Axiom Investment Advisors.
According to the complaint the Autobahn platform was deliberately programmed to execute client orders with delays, therefore resulting in slippage. Further on, the claims state that orders were rejected when the market was moving in an unfavorable direction for the bank.
Any justification of the claims will need substantial investigations from the authorities competent in the matter. That said, it will be very difficult to determine whether the algorithms put in place by Deutsche Bank were not put there merely to facilitate the market making capability of the German lender.
While high-frequency trading companies are known to use algorithms to front-run orders of their clients, Deutsche could have used complex mathematical equations in order to manage its risk of being at a disadvantage from the deal that it helped facilitate.
With the bulk of the foreign exchange fixing charges being settled, Deutsche Bank is facing a different allegation in relation to its 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 business conduct. The German lender is set to be accused by a number of lawyers of manipulating its Autobahn electronic 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.
The bank is denying the allegations and is going to meet the challengers in court. In a statement the bank responded to the accusations: “We disagree with the allegations and will be defending ourselves in court.”
The news doesn’t come as a surprise: Deutsche Bank has already been charged last month for the same matter in the U.S. According to the allegations, the German lender used some sort of specially designed algorithms, which were delaying the execution of the given orders of its clients on the firm’s electronic trading platform Autobahn.
Can you pass the Finance Magnates exam? Give it a go, there are prizes...
US law firm Hausfeld, along with others, has already filed a case in a New York court on behalf of its client, Axiom Investment Advisors.
According to the complaint the Autobahn platform was deliberately programmed to execute client orders with delays, therefore resulting in slippage. Further on, the claims state that orders were rejected when the market was moving in an unfavorable direction for the bank.
Any justification of the claims will need substantial investigations from the authorities competent in the matter. That said, it will be very difficult to determine whether the algorithms put in place by Deutsche Bank were not put there merely to facilitate the market making capability of the German lender.
While high-frequency trading companies are known to use algorithms to front-run orders of their clients, Deutsche could have used complex mathematical equations in order to manage its risk of being at a disadvantage from the deal that it helped facilitate.