Barclays Dark Pool Volume Fell 37% in Week of Lawsuit

Barclays Plc (BARC) saw a 37 percent decline in the number of U.S. shares that traded in its dark pool during the week that it was sued by New York for allegedly lying to customers of that venue.

About 197 million shares were traded in the dark pool during the week of June 23, down from 312 million the previous week, according to data from the Financial Industry Regulatory Authority. Three of the London-based bank’s largest rivals -- Credit Suisse Group AG, UBS AG and Deutsche Bank AG -- saw increases during the week, the Finra data show.

Barclays lied to customers and masked the role of high-frequency traders as it sought to boost revenue at one of Wall Street’s largest private trading venues, New York Attorney General Eric Schneiderman said in a complaint filed June 25. He cited a pattern of misleading and false representations that went on as recently as April.

Deutsche Bank, Royal Bank of Canada, Sanford C. Bernstein & Co. and Investment Technology Group Inc. were among brokerages that disconnected from the Barclays LX platform after the suit, people with knowledge of the matter said that week.

Mark Lane, a Barclays spokesman, declined to comment.

Reuters reported the decline yesterday. The Finra data are only for the most widely traded equity securities.

Photographer: Louis Lanzano/Bloomberg

Eric Schneiderman, attorney general of New York. Barclays lied to customers and masked the role of high-frequency traders as it sought to boost revenue at one of Wall Street’s largest private trading venues, Schneiderman said in a complaint filed June 25. Close

Eric Schneiderman, attorney general of New York. Barclays lied to customers and masked... Read More

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Photographer: Louis Lanzano/Bloomberg

Eric Schneiderman, attorney general of New York. Barclays lied to customers and masked the role of high-frequency traders as it sought to boost revenue at one of Wall Street’s largest private trading venues, Schneiderman said in a complaint filed June 25.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net; Nick Baker at nbaker7@bloomberg.net Nick Baker

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