Barclays Dark Pool Trading Rises 23% as Bank Recovers

Barclays Plc had a 23 percent rise in the number of U.S. shares traded in its dark pool, edging the bank to the cusp of top 10 venues after volume collapsed when it was sued for allegedly lying to customers.

About 127 million shares traded in the private platform in the week starting Sept. 22 up from 103 million a week earlier, making it the 11th largest, according to data from the Financial Industry Regulatory Authority.

Barclays is fighting allegations it lied to customers and masked the role of high-frequency traders to boost revenue at what used to be Wall Street’s second-largest dark pool. Last week, Britain’s second-largest lender reiterated that New York Attorney General Eric Schneiderman’s June 25 complaint is based on “factual and legal errors” and should be dismissed.

The stock fell 0.2 percent to 223.4 pence in London. The shares have dropped 18 percent this year, making Barclays the second-worst performer among Britain’s five largest banks.

Barclays’s dark pool dropped out of the 10 largest U.S. venues in July, surrendering second-place to UBS AG, Finra data show. Before the suit, Barclays’s venue had about 312 million shares traded in the last week of June. Credit Suisse Group AG’s Crossfinder is still the largest private-trading platform, with the latest data showing 348 million shares exchanged in the week.

The case is New York v. Barclays Capital, 451391-2014, Supreme Court of the State of New York, County of New York.

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