Several Barclays executives were aware that the bank was falsely representing how algorithms in its dark pool worked and how client orders were routed, according to an amended complaint prepared by New York’s attorney general.
Bloomberg News reports that the complaint marks the first time that executives at the bank have been identified in New York Attorney General Eric Schneiderman’s suit claiming that the bank misled customers of its in-house trading system to boost its own profits.
The latest filing provides one of the most specific assertions yet by a law enforcement official about unfair playing fields inside dark pools, lightly regulated private venues where about 17% of trading took place as of October, according to Rosenblatt Securities. At Barclays, Schneiderman said, irregularities were widespread.
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