Barclays to cough up $70m for fine
What does this mean? Well, the bank have been accused of not being straight-up with their clients, concerning that high-frequency traders were using the platform, which basically means that this allowed them to trade huge blocks of shares while keeping the price of them private.
Credit Suisse have been accused of the same thing, and the NYAG will be making a formal announcement over dark pool trading, today.
The long and short of it, is that this is breaking the law, so Barclays are looking at a whopper of a fine, as well as having to get an independent body to review the way they trade. Last year, Barclays tried to have this case squashed, but obviously, they were unsuccessful.
"These cases mark the first major victory in the fight against fraud in dark pool trading that began when we first sued Barclays," said Eric Schneiderman, the New York attorney general. He continued, saying that "co-ordinated and aggressive government action" led to "admissions of wrongdoing, and meaningful reforms to protect investors from predatory, high-frequency traders".
"We will continue to take the fight to those who aim to rig the system and those who look the other way."