Skip to comments.New York AG slaps Barclays with securities fraud suit
Posted on 06/25/2014 5:47:35 PM PDT by Citizen Zed
Barclays told customers who chose to trade in its dark pool that they would be protected from predatory traders, which use their speed advantage to deprive other investors of small profits on every trade. But in fact, customers were not protected at all, and the bank in fact courted predatory high-frequency traders in part by charging them virtually nothing, New York Attorney General Eric Schneiderman alleged.
Barclays grew its dark pool by telling investors they were diving into safe waters, Schneiderman said. Barclays dark pool was full of predators there at Barclays invitation.
Barclays said in an emailed statement, We take these allegations very seriously. It added that it is cooperating with authorities, it is looking at the matter internally, and that the integrity of markets is a top priority for the bank.
Schneiderman is looking at dark pools, which are typically owned by brokers, including all of the big banks, and where participants are anonymous and trading information is hidden until after the trades are completed.
(Excerpt) Read more at euronews.com ...
How dare Barclays do this without giving Schneiderman his cut.
Free lunch scam. Shooting over bait.
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