Barclays, Credit Suisse to strike record deals with SEC, NY over dark pools

[Eugene]

Source: Reuters

Business | Sun Jan 31, 2016 1:30pm EST

Barclays, Credit Suisse to strike record deals with SEC, NY over dark pools

WASHINGTON | BY SARAH N. LYNCH

Barclays and Credit Suisse are poised to settle federal and state charges that they misled investors in their dark pools, with Barclays admitting it broke the law and agreeing to pay $70 million, the New York attorney general's office said Sunday.

The settlements between the banks and the U.S. Securities and Exchange Commission and the New York attorney general, which are expected to be formally announced on Monday, will mark the two largest fines ever paid in connection with cases involving dark pools.

At the heart of the cases against both Barclays and Credit Suisse are allegations that they misled investors in the dark pools, saying they would be protected from predatory high-frequency trading tactics.

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Dark pools are trading venues that differ from public exchanges because orders are not visible to other traders until they are executed.

The lack of pre-trade price information is designed to help institutional investors trade large blocks of shares without the market moving against them.

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Read more: http://www.reuters.com/article/us-sec-new-york-darkpools-idUSKCN0V90UE

[Lint Head]

1. And again the thieves do not go to jail.

Maybe we should all start stealing millions of dollars. Seems to be a good way to make a decent living.