June 26 Big banks have started pulling their
business out of Barclays' dark pool, after the British
bank was sued by New York's top securities regulator for
allegedly misleading institutional investors over its anonymous
trading venue, The Financial times reported.
Deutsche Bank, Credit Suisse and Royal
Bank of Canada, asset manager Alliance Bernstein were
among the institutions that withdrew from Barclays' dark pool on
Thursday, the paper said. (on.ft.com/1liYksA)
Barclays said any drop in trading volumes at LX might be due
to a technical glitch.
Goldman Sachs, Morgan Stanley and JPMorgan
Chase & Co, were not sending orders to Barclays' dark
pool, the daily reported, citing people familiar with the
The New York State attorney general's lawsuit alleges that
Barclays promised to get the best possible prices for customers
looking to buy or sell shares but instead took steps that
maximized the bank's profits and executed nearly all of its
customers' stock orders on LX instead of on exchanges or other
venues that might have offered better prices.
Dark pools were created to allow investors to execute big
trades without tipping off the market. But ever-larger volumes
of trades have been shunted into dark pools and critics say
their opacity makes markets less fair for other investors.
Deutsche Bank and Credit Suisse declined to comment. Royal
Bank of Canada, Goldman Sachs, Morgan Stanley and JPMorgan Chase
could not immediately be reached for comment.
(Reporting By Neha Dimri in Bangalore)