Bloomberg News: Trading volume in Barclayss BCS dark pool, a venue where trades are not visible to the broader market, fell 66 percent during the week of June 30 compared with a week earlier, according to a Bloomberg News report . The week before that, volume fell 37 percent. This corresponds with results from a Bloomberg Global Poll of financial professionals last week that found more than half of the people who responded viewed the industry negatively, according to Business Week. The attorney generals lawsuit paints an unforgiving picture, alleging that Barclays misled its trading clients about what was going on in its dark pool, all while inviting high-frequency trading firms to swoop in and make money at its clients expense. Barclays says it is cooperating with the investigation and has placed at least one executive on leave and Now that investors know more about how dark pools operate, they dont seem to like them very much. This is bad news for dark pool operators, which have seen their business under assault since New York State Attorney General Eric Schneiderman filed a lawsuit in June against Barclays, the operator of the largest dark pool in the U.S., accusing the company of defrauding its customers. Rarely has an industry suffered the kind of devastating public-relations damage that dark pools and Barclayss specifically have recently.
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Tagged under Barclays, dark pool topics.