Barclays accused of hiding traders role
It was said by New York Attorney General Eric Schneiderman that the role of high-frequency traders were hidden by Barclays Pls (BARC) even after claiming that it had shut off clients who engaged in suspicious activity.
The New York Attorney General sued the accused bank in the Supreme Court in New York State back in June, the accusations being that it was bilking its own customers so as to expand its dark pool. The bank brushed it off and asked that the case be dismissed saying the suit is based on factual errors and does not indicate any investors being harmed.
A leading role in seeking to reform equities trading of approximately $23 trillion U.S. stock market has been sought by New York. It is examining if exchanges and dark pools benefit high-frequency traders by giving them unfair perks. After the bank’s motion to dismiss the case he said that William White, who is head of the electronic trading, said during a presentation back in 2012 that the firm had shut off clients doing suspicious trading in spite of the bank claiming it “never promised” to bar aggressive traders from the dark pool.
The law suiting clearly underlining the allegation that the bank had engaged in a persistent pattern of deceit and fraud, purposely lying to its investors in hopes to grow its dark pool. It was further said by Matt Mittenthal who is a spokesman for Schneiderman. “Based on the facts in our suit, and yesterday’s filing, we are confident the court will reject Barclays’s motion in its entirety and allow us to prove these disturbing allegations.”
The spokesman for the London-based Barclays, Mark Lane said that the bank continues to fully cooperate with the New York Attorney General.
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