NEW YORK (CBSNewYork/AP) — New York’s attorney general has accused British banking and financial services firm Barclays PLC of misleading large institutional investors and other clients by falsely telling them it was taking measures to protect them from predatory high-frequency traders.
The allegations against Barclays were contained in a securities fraud lawsuit that Attorney General Eric Schneiderman announced at a Manhattan news conference Wednesday.
The complaint, filed in state Supreme Court, portrays “a flagrant pattern of fraud, deception and dishonesty with Barclays clients and the investing public,” the attorney general said.
As 1010 WINS’ Holli Haerr reported, Schneiderman claims Barclays told certain clients the company had a special program to protect them against high-frequency traders, but instead the firm favored those types of investors in a private trading platform called a dark pool.
High-frequency traders use computer programs to buy and sell stocks, sometimes in a second or less, Haerr reported.