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New York sues Barclays for fraud over 'dark pool' trading

Published on Jun 26, 2014 6:22 AM
 
New York prosecutors sued British bank Barclays for fraud on Wednesday, saying it ran a dark pool securities trading operation to the benefit of predatory high-frequency traders. -- PHOTO: AFP

NEW YORK (AFP) - New York prosecutors sued British bank Barclays for fraud on Wednesday, saying it ran a “dark pool” securities trading operation to the benefit of “predatory” high-frequency traders.

Attorney General Eric Schneiderman said Barclays promised clients that it would protect them from aggressive high-speed trading firms in the dark pools but at the same time took steps that benefited these firms.

“The facts alleged in our complaint show that Barclays demonstrated a disturbing disregard for its investors in a systematic pattern of fraud and deceit,” said Mr Schneiderman.

“Barclays grew its dark pool by telling investors they were diving into safe waters. According to the lawsuit, Barclays’ dark pool was full of predators – there at Barclays’ invitation.”

 
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