Barclays urges New York court to drop fraud case over 'dark pools'

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Barclays on Tuesday urged a New York court to toss the state attorney general's fraud case over how the bank ran its private U.S. trading venue, saying the case oversteps state securities laws and offers no proof any investors were hurt.

Reuters reports that New York Attorney General Eric Schneiderman filed a lawsuit on June 25 accusing the London-based bank of giving an unfair edge to high-frequency traders and lying to other customers about it. It is the highest-profile case in a recent raft of investigations by authorities into the fairness of high-speed, automated trading practices and alternative trading systems, or 'dark pools.'

Barclays said in its court filing that Schneiderman was trying to dramatically expand the powers of a New York statute known as the Martin Act, which aims to protect investors when the purchase, sale, or exchange of a security is misrepresented. It said Schneiderman had conceded in an earlier filing that the lawsuit was based on claims that Barclays had misrepresented how it operated its dark pool rather than about any particular security transaction.

Hit the link below to access the complete Reuters article:

Barclays says New York 'dark pool' suit oversteps legal bounds

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