Barclays may face expanded New York 'dark pool' lawsuit

Published 01/21/2015, 03:42 PM
Updated 01/21/2015, 03:50 PM
© Reuters. Logos are seen outside a branch of Barclays bank in London
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NEW YORK (Reuters) - New York State Attorney General Eric Schneiderman said on Wednesday he wants to expand his lawsuit accusing Barclays Plc of fraud in how it operated a private U.S. trading venue known as a "dark pool."

In court filings, Schneiderman said he has uncovered new evidence 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 his probe, and refused to allow two top equities electronic trading executives he had subpoenaed to submit to questioning.

A spokeswoman for Barclays did not immediately respond to requests for comment.

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

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

© Reuters. Logos are seen outside a branch of Barclays bank in London

It is among the highest-profile cases in a series of regulatory probes into the fairness of high-speed, automated trading practices and alternative trading systems.

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