LONDON (Alliance News) - Large banks have begun to pull business from Barclays PLC's dark pool in the wake of New York state's top law enforcer filing fraud charges against it earlier this week, the Financial Times reports Friday without saying where it got the information.
According to the FT's Thursday online report, Deutsche Bank, Credit Suisse, and Royal Bank of Canada were among the institutions to withdraw from LX. The FT said that asset manager AllianceBernstein has also said it had stopped using the Barclays dark pool, the newspaper said.
According to the report, Barclays said that any drop in trading volumes at LX could be due to technical problems.
Barclays shares closed down 6.5%, Thursday, after Eric Schneiderman, the state attorney-general, accused Barclays of demonstrating a "disturbing disregard" for its investors in a "systematic pattern of fraud and deceit". The complaint alleges that Barclays gave "systematic advantages" to high-frequency traders over other investors using the pool.
http://www.ft.com/cms/s/0/71268992-fd55-11e3-96a9-00144feab7de.html?siteedition=uk#axzz35cseEXyH
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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