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Barclays may face expanded New York 'dark pool' lawsuit

Wed, 21st Jan 2015 20:39

NEW YORK, Jan 21 (Reuters) - New York State Attorney GeneralEric Schneiderman said on Wednesday he wants to expand hislawsuit accusing Barclays Plc of fraud in how itoperated a private U.S. trading venue known as a "dark pool."

In court filings, Schneiderman said he has uncovered newevidence that the British bank cheated clients and investors,and that top executives knew what was occurring.

He also said that Barclays has refused to cooperate in hisprobe, and refused to allow two top equities electronic tradingexecutives he had subpoenaed to submit to questioning.

A spokeswoman for Barclays did not immediately respond torequests for comment.

The filings were made on Wednesday with the New York StateSupreme Court in Manhattan.

Schneiderman had sued Barclays in June, accusing it ofgiving an unfair edge to high-frequency traders and lying toother customers about it.

It is among the highest-profile cases in a series ofregulatory probes into the fairness of high-speed, automatedtrading practices and alternative trading systems. (Reporting by Jonathan Stempel in New York; Editing by LisaShumaker)

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