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News Link • Business/ Commerce

How Barclays Got Caught Red-Handed With "Pernicious HFT Fraud"


Remember when in the aftermath of the most recent Michael Lewis-inspired HFT scandal, one after another HFT and Dark Pool exchange swore up and down they know, see, hear and certainly trade no predatory algo evil? Turns out they lied, as usual.

As was reported earlier, the NY AG just charged Barclays with fraud (or rather, as Schneiderman called it repeatedly "pernicious fraud") for not only misrepresenting the nature of its dark pool to clients, but also exposing them to numerous "toxic" and predatory HFT algos - another word for algos which frontran orderflow either within the Barclays dark pool, Barclays LX - arguably the second largest venue in the US second only to Credit Suisse' Crossfinder - or on different lit and unlit venues as soon as they had seen the flow as indicated by Barclays.

As Bloomberg explains, "Barclays Plc was so bent on lifting its private trading venue to the upper ranks of Wall Street dark pools that it lied to customers and masked the role of high-frequency traders, according to New York's attorney general."

Barclays falsified marketing materials to hide how much high-frequency traders were buying and selling, according to a complaint filed today by Eric Schneiderman.

1 Comments in Response to

Comment by Stupid Amerkin
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So what. Isn't this just business as usual?

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