More Information

Michael Perino on Barclays' Hit Back at Dark-Pool Suit

In the Media
Friday, July 25, 2014

Barclays Hits Back at Dark-Pool Suit
By Scott Patterson
The Wall Street Journal

Barclays also said the New York attorney general's office is overstepping its mandate by attempting to regulate dark pools, which it said is primarily the responsibility of the Securities and Exchange Commission. The SEC oversees dark pools, which account for about 14% of U.S. trading volume, under Regulation ATS, short for "alternative trading system." The Wall Street Journal reported in June that the SEC is investigating a number of big dark-pool firms, including Barclays. An SEC spokeswoman declined to comment Thursday.

Legal experts said Barclays is unlikely to succeed in its motion to dismiss the case, in part because the attorney general's burden of proof is much less than what would be required by federal law.

"A New York prosecutor is not required to show either that investors were injured or that the defendant intended to defraud investors," said Michael Perino, a law professor at St. John's University School of Law in New York. "That is why, historically, the Martin Act has been such a formidable weapon in the hands of aggressive prosecutors."

Read More