High-Frequency Firm Tradebot Swam in Barclays Pool, N.Y. Says
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New York Attorney General Eric Schneiderman’s complaint against Barclays Plc names just one outside high-frequency trader, Tradebot Systems Inc., as operating in its dark pool. In keeping with the document's tone, the firm is referred to more than once as “toxic.”
Schneiderman’s complaint, filed with the Supreme Court of New York today, alleges that Barclays executives lied to clients about high-frequency traders in its LX platform, one of the biggest private U.S. equity venues. In particular, London-based Barclays hid that Tradebot was “one of the largest and most toxic participants.”