Barclays dark pool volumes bounce back after fraud allegations
Trading in Barclays dark pool bounced back in early July, industry data showed yesterday.
Volumes had collapsed by more than 70 per cent after Goldman Sachs was fined for wrongdoing and Barclays was accused by US regulators of lying to investors in the private trading facility.
The most recent data covers the second week of July, and shows volumes resurging.
Over the week, the number of shares traded jumped from 66.4m to 94.2m, a rise of 41.9 per cent.
Barclays’ LX pool had been the second largest, behind Credit Suisse’s. Now it is in 11th place, behind most big US investment banks.
It has launched a determined fightback against the allegations, arguing that the New York attorney general had no evidence that the bank mis-led clients.
It was alleged that Barclays had marketed the dark pool as a location safe from predatory trading, but then encouraged predators into the pool and lied to other clients about their prevalence and actions.
Barclays dark pool was the second largest at the start of June, according to data from the Financial Industry Regulatory Authority (Finra).