Deutsche Bank, UBS face US regulator inquiry

Written by Reuters | Frankfurt/Zurich | Updated: Jul 30 2014, 08:05am hrs
Germany's Deutsche Bank and Switzerland's UBS said they were caught up in an inquiry by US regulators, who are looking into whether broker-run stock exchanges gave an unfair advantage to high-frequency traders.

The investment banks, which said on Tuesday that they were cooperating with inquiries, also faced class action suits that alleged they violated US securities laws, allowing high-speed traders to make a profit at the expense of institutional investors, such as pension funds and insurance companies.

UBS said in its second-quarter earnings report it was responding to inquiries from US authorities over the operation of its 'dark pool'.

Deutsche Bank, which also reported earnings on Tuesday, said it had received requests for information from certain regulatory authorities related to high frequency trading but did not give further details.