I’m not usually the kind of guy to say, “I told you so.”
But you know what? I’m saying it.
Dark pools – private markets unavailable to the public – and high-frequency trading are manipulative schemes run amok.
They weren’t always. Both were the result of unintended consequences. But that’s all behind them. In front of them now are civil and criminal lawsuits.
Late yesterday, New York State Attorney General Eric Schneiderman charged Barclays PLC with fraud over how it markets its dark pool and how it operates it.
In a press conference yesterday after the market had closed, the AG said, “Barclays dramatically increased the market share of its dark pool through a series of false statements to clients and investors about how and for whose benefit Barclays operates its dark pool. Contrary to Barclays representations that it implemented special safeguards to protect clients from aggressive or predatory high frequency traders, Barclays is accused of operating its dark pool to favor high frequency traders.”