June 25, 2014 / 7:22 PM / 3 years ago

NY AG to file securities fraud lawsuit against Barclays -source

NEW YORK, June 25 (Reuters) - The New York Attorney General is set to file a securities fraud lawsuit against Barclays PLC for misrepresenting the safety of its U.S.-based alternative trading system, or "dark pool," to investors, according to a source.

The lawsuit, which the Attorney General will announce at 4 p.m. (2000 GMT) on Wednesday, alleges that Barclays operates its dark pool to favor high-frequency traders and has actively sought to attract them by giving them systematic advantages over others trading in the pool, the source said.

Barclays declined to comment. (Reporting by John McCrank, Karen Freifeld, and Herb Lash; Editing by Marguerita Choy)

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