Credit Suisse Group and Barclays PLC will pay a combined US$154.3 million to settle investigations by US regulators into the banks’ dark pools, the Wall Street Journal reported.
The record settlements are with the US Securities and Exchange Commission (SEC) and the New York attorney general, the paper said.
The SEC alleged that Barclays and Credit Suisse repeatedly failed to police their trading venues, gave some clients inaccurate information about the venues and violated SEC rules aimed at ensuring market fairness and accurate pricing of securities.
“These cases mark the first major victory in the fight against fraud in dark-pool trading that began when we first sued Barclays,” Eric Schneiderman, the New York attorney general, was quoted as saying in a statement Sunday.
“We will continue to take the fight to those who aim to rig the system and those who look the other way,” he said.
Under the settlement, Credit Suisse will pay a total of nearly US$85 million, while Barclays will pay about US$70 million, according to the report.
Dark pools are privately run stock-trading venues that have come under increased scrutiny in recent years.
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