New York banking regulator Benjamin Lawsky, said that his Agency for Research on e-currency trading focuses on practice known as “last look” feature designed to allow banks to delay the implementation of orders to avoid price fluctuations.
“We are worried that at least there will be questions in relation to handling,” said Lawsky in an interview with Bloomberg. He tries to find out whether some banks abuse and whether profit at the expense of the customer.
“Last look” are a remnant of the era when computers began to replace people in the implementation of foreign exchange transactions. In those days, there was a delay between that contract was introduced and implemented, which increases the risk that the price may change and cause losses to the banks before the transaction.
Lawsky, has investigated more than a dozen offices against bank fraud, including, Barclays Plc and Deutsche Bank AG. Lawsky earlier found evidence that these banks may have used methods for manipulation of exchange rates.
Lawsky sent later in the month summons of other banks Goldman Sachs Inc., BNP Paribas SA, Credit Suisse Group AG and Societe Generale SA- looking reports related to their electronic trading platforms.