Barclays, Credit Suisse reach settlement over probe into dark-pools

The New York Attorney General was set to fine Barclays $70m (£49m) for misleading investors about its so-called 'dark-pool' trading venues, the BBC reported citing the New York Attorney General´s office.

Dark pools are private trading venues that allow clients to retain their identities.

However, Barclays failed to inform its clients that 'high-frequency' traders were active on its platform.

As part of the settlement, Barclays would also admit it broke the law and agree to install an independent monitor that will carry out a review of its electronic trading business.

Swiss broker Credit Suisse would be fined another $84.3m as part of the settlement, but would neither deny nor admit to any wrongful actions.

"These cases mark the first major victory in the fight against fraud in dark pool trading that began when we first sued Barclays," said Eric Schneiderman, the New York attorney general.

"We will continue to take the fight to those who aim to rig the system and those who look the other way."