New York Attorney General Eric Schneiderman file a suit alleging Barclays told investors that it had set up safeguards to protect them from predatory high-frequency traders. But it says Barclays actually catered to those traders.
Large institutional investors have long been at the mercy of flash traders who use computers to make thousands of trades a second, skimming off tiny bits of profit from pension and retirement accounts.
For protection fund managers sought out private stock exchanges called dark pools where only certain investors were allowed in.
Think of them like a fish tank for guppies.
"What Barclays is accused of is making promises that they would keep sharks out of the pool but were actually sort of inviting the sharks into the pool."
New York Attorney General Eric Schneiderman announced Wednesday that he’s reached a deal with a newswire to prevent high frequency stock traders from having early access to financial news. The agreement with PR Newswire is the third such deal Schneiderman has reached with a news service.
New York Attorney General Eric Schneiderman took aim at high speed stock traders again Wednesday. He announced what he called an "agreement" with a newswire service to stop giving information to high speed stock traders before traditional traders. This is the latest in Schneiderman's campaign against what he calls "insider trading 2.0 "
New York Attorney General Eric Schneiderman says he's reached a deal with 18 investment banks to halt what he calls Insider Trading 2.0. This is the latest in an ongoing investigation over something that isn't exactly illegal.