This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28465825
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Barclays challenges US 'dark pool' fraud case | Barclays challenges US 'dark pool' fraud case |
| (35 minutes later) | |
| Barclays has said it wants legal action alleging fraud in its US "dark pool" trading operations to be thrown out of court. | Barclays has said it wants legal action alleging fraud in its US "dark pool" trading operations to be thrown out of court. |
| In a statement the bank said: "We do not believe that this suit is justified." | In a statement the bank said: "We do not believe that this suit is justified." |
| New York prosecutors alleged in June that Barclays had misled investors using its alternative trading platform. | |
| "Dark pool" trading operations allow investors to trade large blocks of shares but keep the price private. | "Dark pool" trading operations allow investors to trade large blocks of shares but keep the price private. |
| "Barclays works closely with its regulators in all jurisdictions and will continue to cooperate with the New York Attorney General," a Barclays spokesman said. | |
| "However, we do not believe that this suit is justified, and we have a duty to our shareholders, clients and staff to defend our position," he added. | |
| Analysis | |
| BBC Business correspondent Simon Jack | |
| Barclays is fighting back against charges it misled investors who used a private market run by the bank. | |
| Known as dark pools, they are markets where professional investors can go to buy or sell large blocks of shares - like a private club for high rollers. | |
| These pools can be shark infested. Computer driven trading programs which buy and sell millions of shares in fractions of seconds analyse patterns and use that information to nip in before other customers. | |
| Barclays was accused of telling its clients in brochures that their pools were shark free when in fact they were there - at Barclay's invitation. | |
| Barclays have filed a motion to dismiss the case at a very early stage because it says that even if the facts alleged are correct - which they do not accept - it still doesn't amount to fraud. | |
| The bank says it is unlikely very sophisticated clients relied on these marketing materials, there is no evidence of anyone suffering any loss and its none of the Attorney General's business anyway - it should be a matter for the Securities and Exchange Commission. | |
| The lawsuit has been very damaging for Barclays which ran one of the biggest dark pools. Trading volumes fell by nearly 80% in the aftermath of the lawsuit. |