What to Eric Schneiderman’s naked eye appears as fraud, Barclays customers apparently understand is just totally legitimate ways of doing business, according to the bank. Therefore, it wants this dark pools lawsuit dismissed and never mentioned again. Not once!

The bank’s motion to dismiss the lawsuit against its private trading venue – or “dark pool” – said the attorney general failed to identify any fraud, and did not establish material misstatements, identify victims or actual harm…In a statement from a spokesman, Schneiderman stood his ground, saying the lawsuit detailed how Barclays engaged in “a persistent pattern of fraud and deceit, lying to its investors in order to grow its dark pool.” … Barclays’ clients are highly sophisticated traders and money managers who are capable of closely monitoring the quality of their trades based on execution data, not glossy marketing brochures or quotes from magazine articles, the bank said. The allegations are premised on mischaracterizations of documents portrayed in the complaint in a way that removes important information and context Barclays provided about high frequency traders and “aggressive” trading, the bank added. It said sales materials the bank showed clients were misconstrued, in one case making one document appear as if it were two. Seen as one document, Barclays argued a sophisticated investor would fully understand the intricacies of trading on its high-frequency venue known as LX.

Barclays fights back against high-frequency trading lawsuit [NYP]
Barclays files to dismiss New York lawsuit against ‘dark pool’ [Reuters]

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Comments (4)

  1. Posted by Rube | July 24, 2014 at 3:09 PM

    Brad says you guys are mean.

    Mike L., ex wall street intern, I mean big shot trader who saw the error of his ways.

  2. Posted by Guest | July 24, 2014 at 3:28 PM

    don't all AGs take fraud out of context?

  3. Posted by Rodney King | July 24, 2014 at 5:10 PM

    Oh, we all know how much law enforcement people LOVE to be told "You're not smart enough to understand what I'm doing" or "You can't do this to me, I'm an Indian Diplomat!" so I'm sure this will totally work out in the long run.

  4. Posted by Pot And Kettle | July 24, 2014 at 5:44 PM

    The bank's statement was written by someone who has an even poorer understanding of dark pools than the AG.