Mark Iandolo Feb. 2, 2016, 12:43pm


NEW YORK (Legal Newsline) — Barclays Capital Inc. and Credit Suisse Securities (USA) LLC have agreed to pay a combined $154.3 million to New York state and to the SEC over allegations of fraudulent dark pool operation, New York Attorney General Eric T. Schneiderman has announced.

According to the allegations, these companies made false statements and omissions related to the marketing of their respective dark pools and other high-speed electronic equities trading services. Dark pools are private exchanges for trading securities and cannot be viewed by the general public. They are completed outside of public stock exchanges.

"These cases mark the first major victory in the fight to combat fraud in dark pool trading and bring meaningful reforms to protect investors from predatory, high-frequency traders,” Schneiderman said. "This effort, which began when we first sued Barclays, includes coordinated and aggressive government action which forced admissions of wrongdoing and record fines. We will continue to take the fight to those who aim to rig the system and those who look the other way."

Barclays will pay $70 million, split equally between New York state and the SEC, and will install an independent monitor who will look to ensue proper operation of its electronic trading division. Credit Suisse will pay $60 million split equally, and will also pay $24.3 million in disgorgement and prejudgment interest to the SEC for other violations.

Want to get notified whenever we write about New York Attorney General ?
Next time we write about New York Attorney General, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

New York Attorney General
99 Washington Square
Albany, NY 12205

More News