FRANKFURT (Reuters) - Trading in interest rate products remained subdued from September into October at Deutsche Bank’s (>> Deutsche Bank AG) investment bank, Chief Financial Officer Stefan Krause said on Wednesday.

Deutsche Bank earlier reported a big drop in debt trading income at its investment bank in the third quarter of 2014 compared to the second quarter as clients remained on the sidelines due to market uncertainty.

Separately, Krause said that Deutsche's possible involvement alleged attempts to manipulate foreign exchange benchmark prices was likely less severe than the involvement seen by other banks.

"Everything we know right now (about the forex investigation) is that our severity, our involvement in it is smaller," he said.

Otherwise, Deutsche would have been included in the list of six big banks targeted by investigators, he said. "We should clearly see this at good news at this time," Krause said.

Britain's financial regulator FCA is in talks with six major banks - UBS (>> UBS AG), Barclays (>> Barclays PLC), HSBC (>> HSBC Holdings plc), Royal Bank of Scotland (>> Royal Bank of Scotland Group plc), JP Morgan (>> JPMorgan Chase & Co.) and Citi (>> Citigroup Inc) - over allegations of collusion and manipulation in the foreign exchange market and a group settlement could cost them close to 2 billion pounds.

(Reporting by Thomas Atkins; Editing by Arno Schuetze)