Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barclays' dark pool lawsuit wipes $13bn off major banks

Barclays' dark pool lawsuit wipes $13bn off major banks

News that Barclays will face US prosecutors for allegedly misleading institutional investors who use its dark pool has caused major banks to withdraw from the anonymous trading venue.

The Financial Times reported that major banks such as Deutsche Bank, Credit Suisse and Royal Bank of Canada were among those that opted to leave Barclays’ LX dark pool after the news broke that Barclays faces a lawsuit. New York attorney general Eric Schneiderman accused Barclays of 'fraud and deceipt' since 2011, alleging the bank lied to clients about the level of protection they would receive in its dark pool from high frequency traders.

The news wiped over $13 billion off the market value of the 10 biggest dark pool owners, as analysts speculated that US prosecutors might target others. Barclays' share price was down more than 6%, while shares in other dark pool operators including Credit Suisse, UBS and Deutsche Bank also fell.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter