LONDON (Alliance News) - The New York attorney general Tuesday called for the rejection of Barclays PLC's move for the dismissal of the state's lawsuit alleging fraud in connection with how the bank operated its dark pool trading platform, Reuters has reported.
According to the report, New York Attorney General Eric Schneiderman targeted Barclays' argument that the lawsuit falls outside the Martin Act.
Part of Barclays' argument is that the Martin Act - on which the NYAG?s claims are predicated - is limited to actions for fraud in the purchase or sale of ?securities", and does not extend to all actions related to finance. In addition, the bank has previously said that using the Martin Act to cover alternative trading platforms could create "unnecessary conflicts" with federal law, as to this point only the US Securities and Exchange Commission has regulated such platforms.
But Schneiderman said the statute has long co-existed with with federal securities regulation and enforcement, Reuters reported. Schneiderman also said that the suggestion in Barclays' motion that federal law should take precedence in matters of securities fraud is misguided, according to the news agency.
Barclays has until October 12 to respond, after which the case will go to trial if a settlement isn't reached, according to Reuters.
"As stated in our motion to dismiss, the New York Attorney General?s complaint is based on clear and substantial factual errors. Barclays works closely with its regulators in all jurisdictions, and we continue to cooperate with the New York Attorney General. However, we do not believe that this suit is justified, and we have a duty to our shareholders, clients and colleagues to defend our position. We will respond to the New York Attorney General?s opposition in due course," Barclays said in a statement issued on its website.
http://uk.reuters.com/article/2014/09/17/uk-barclays-lawsuit-idUKKBN0HB2MS20140917
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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