Cracks open in dark pool defense with Barclays lawsuit

Last October, managers told an employee in Barclays (BARC) Plc's trading unit to keep from clients a report showing the bank routed most of their dark pool orders to itself, according to the New York attorney general. He refused, Eric Schneiderman said, and was fired the next day. The state's top law-enforcement official released the account, which he said he got from the former Barclays senior director, in a 30-page document that portrayed the London-based bank as bilking its own customers to expand its dark pool. Schneiderman cited a pattern of "fraud and deceit" starting in 2011 in which Barclays hoarded orders for stocks and assured investors they were protected from high-frequency firms while simultaneously aiding predatory tactics.

via Business News - Yahoo Finance http://ift.tt/UQbqbm