New York regulators have found evidence that Barclays Plc andDeutsche Bank AG may have used algorithms on their tradingplatforms to manipulate foreign-exchange rates, a person withknowledge of the investigation said.

The practice suggests there may be a systemic problem involvingautomated tools that goes beyond individuals colluding to rigcurrency benchmarks and take advantage of less sophisticatedclients.

The algorithms' use is being scrutinized by the New YorkDepartment of Financial Services, said the person. Theinvestigators are looking into the practice at each bank and itisn't clear if there's a link between the two, according to theperson, who asked not to be named because the matter isn't public.The algorithms were embedded in Barclays's BARX trading platformand Deutsche Bank's Autobahn system, according to the person.

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