08 December 2016
Visit aciworldwide.com

Barclays seeks dismissal of NY Attorney General's dark pool lawsuit

24 July 2014  |  5674 views  |  1 Barclays branch sign

Barclays has filed a motion seeking to throw out a lawsuit from the New York Attorney General accusing the bank of deceptively luring unwary investors to a dark pool that was actually being run for the benefit of predatory high-frequency traders.

The suit filed last month by crusading New York Attorney General Eric Schneiderman, claims that Barclays dramatically increased the market share of its dark pool by lying to clients about the level of protection they would receive from high-frequency trading firms.

The complaint alleges that the bank falsified marketing material and client reports to hide the extent and type of high frequency trading in its LX dark pool.

However, in its motion to dismiss it, Barclays says that the complaint "fails to identify any fraud-establishing no material misstatements, no identified victims, and no actual harm".

The bank says that Schneiderman's case ignores that LX customers are "highly sophisticated" traders and asset managers that rely on detailed execution data to decide where to execute their trades, "not on the glossy marketing brochures or quotes from magazine articles the NYAG cites".

In addition, Barclays says that Schneiderman does not even have the authority to bring the case because the Martin Act - on which the claims are predicated -is limited to actions for fraud in the purchase or sale of securities' while the allegations concern only the functioning of LX as an ATS.

Finally, the bank says that the complaint is wrong to seek damages and restitution for the people of the state of New York when it is not alleging that they suffered any harm.

Responding, Schneiderman's communications director Damien LaVera says: "We are confident that a judge will reject this motion and allow us to prove these disturbing allegations in Court."

Comments: (1)

Jim Wells
Jim Wells - Wellspring Consulting International - Fort Lauderdale | 25 July, 2014, 16:29

How ironic that after US & UK financial regulators have allowed mega-banks to victimize customers with impunity for decades, Barclays now feels it is being victimized by an authority that seeks to hold it accountable for just one of its nefarious activities.  Jim Wells

 

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

NY Attorney General files lawsuit over Barclays' 'toxic' dark pool

NY Attorney General files lawsuit over Barclays' 'toxic' dark pool

26 June 2014  |  5464 views  |  1 comments | 2 tweets | 3 linkedin
Liquidnet fined $2m for misusing dark pool subscriber data

Liquidnet fined $2m for misusing dark pool subscriber data

09 June 2014  |  5553 views  |  1 comments | 1 tweets | 2 linkedin
SEC chair sets out HFT and dark pool proposals

SEC chair sets out HFT and dark pool proposals

06 June 2014  |  5364 views  |  0 comments | 5 tweets | 1 linkedin
New York attorney general sets sights on co-location

New York attorney general sets sights on co-location

18 March 2014  |  5647 views  |  1 comments | 3 tweets | 6 linkedin
New York attorney general goes after HFT cheats

New York attorney general goes after HFT cheats

25 September 2013  |  6858 views  |  1 comments | 2 tweets | 1 linkedin
Dark pool trading costing US investors billions - study

Dark pool trading costing US investors billions - study

07 June 2013  |  6123 views  |  0 comments | 11 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit contisgroup.comVisit capgemini.com

Top topics

Most viewed Most shared
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
7609 views 12 comments | 15 tweets | 27 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
7374 views comments | 25 tweets | 15 linkedin
China tops world fintech rankingsChina tops world fintech rankings
7277 views comments | 36 tweets | 30 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6456 views comments | 19 tweets | 20 linkedin
EBA bends under weight of PSD2 mandatesEBA bends under weight of PSD2 mandates
6074 views comments | 32 tweets | 42 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job