26th Jun 2014 05:26
LONDON (Alliance News) - UK lender Barclays PLC has been sued by New York Attorney General Eric Schneiderman for its alleged involvement in fraudulent activity related to a trading venue known as "dark pool."
In dark pool, buy and sell orders are not reported to the public. This allows investors to conceal their trading interest and evade companies that are more swift.
The lender is alleged to have lied about how it favors high-frequency players engaged in this trading activity.
The suit alleges that Barclays' dark pool, called LX, favored these participants, and played down the extent of their use of the venue.
It also claims that the lender falsely portrayed how orders from clients are routed. Barclays has been given 20 days to respond to the charges.
Meanwhile, the Wall Street Journal said, quoting a person familiar with the matter, that following the news, Barclays on Wednesday postponed a corporate-bond sale.
BARC.L closed down 1.6% on Wednesday at 230.00 pence.
Copyright RTT News/dpa-AFX
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