The New York Attorney General’s office is taking aim at its next target in its year-long inquiry into high-frequency trading abuses through lightly regulated stock markets known as 'dark pools'.
FOX Business Network reports they have learned that New York Attorney General Eric Schneiderman’s office is preparing a civil case against Credit Suisse, the operator of the Crossfinder dark pool, that could be announced in the coming weeks.
The case would mark the second major civil action filed by the AG’s office since regulators launched their probe into deceptive practices in these markets last year.
By some measurements, Crossfinder is considered Wall Street’s largest dark pool, trading more so-called Tier 1 stocks (those that appear in major indexes like the Standard & Poor’s 500) than any other private exchange. The exact nature of the attorney general’s case against Credit Suisse is unclear; but according to one person with knowledge of the matter, it would be similar to the civil action Schneiderman’s office took against the dark pool operated by Barclays that involved what’s known as 'latency arbitrage'.
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