ZURICH, July 31 Swiss bank Credit Suisse on
Thursday became the latest major European bank to say it was
caught up in an investigation into alternative trading venues
known as dark pools.
The bank is one of the biggest players in dark pools, which
are broker-run trading venues that let investors trade shares
anonymously and only make trading data available afterwards,
reducing the chance of information leaking about trade orders.
"Credit Suisse is responding to inquiries from various
governmental and regulatory authorities concerning the operation
of its alternative trading systems, and is cooperating with
those requests," the Zurich-based bank said in its
Credit Suisse, which alluded to the probe last week, did not
specify which regulators. A spokesman for the bank didn't
elaborate. The bank said it is also among defendants in a
class-action suit in the United States alleging its
high-frequency trading activities broke securities law.
The lack of transparency around dark pools has drawn the
scrutiny of regulators, concerned that brokers and proprietary
trading firms that use aggressive high-frequency trading
strategies have an unfair advantage over other clients.
Barclays is facing allegations in the United States
that it lied to clients about its dark pool. The bank has urged
the dismissal of the lawsuit in New York.
Germany's Deutsche Bank and Switzerland's UBS
said on Tuesday they are being probed by U.S.
regulators, who are looking into whether broker-run stock
exchanges gave an unfair advantage to high-frequency traders.
(Reporting by Joshua Franklin and Katharina Bart; Editing by