New York attorney general files fraud suit against Barclays
MOSCOW, June 26 (RAPSI) – The New York State Attorney General has filed civil fraud charges against the UK banking giant, Barclays, arguing that it favored high-frequency traders over other investors, The New York Times writes.
According to the New York Times, Eric Schneiderman accused Barclays of falsely representing the concentration of high-frequency traders in its private trading platform, known as a dark pool. The attorney also claims the bank falsified marketing materials and misrepresented a service that purported to protect investors from predatory trading behavior.
Dark pools allow investors to submit buy and sell orders without alerting the broader market to their trading activity. The dark pool run by Barclays, Barclays LX, was part of its acquisition of certain Lehman Brothers operations in 2008.
A Barclays representative refused to comment.
London-based Barclays bank was established in 1690. It is now one of the largest financial and banking groups in Britain and the world. It has approximately 140,000 employees.