Barclays’ ‘dark pool’ sees 33% dip in shares traded

Barclays’ ‘dark pool’ saw a 33% weekly drop in the number of shares traded, suggesting a US lawsuit alleging it misled customers continues to weigh on volumes while threatening revenue at its investment bank.

About 97m shares were exchanged on the private trading platform in the week of October 20, down from 144m a week earlier. The volume was 129m in the week of October 6.

Barclays is fighting New York attorney general Eric Schneiderman’s allegation it lied to customers and masked the role of high-frequency traders to boost revenue at what used to be Wall Street’s second-largest dark pool. The scandal has spilled over into other areas of the investment bank and contributed to a 25% decline in equities trading in the third quarter, finance director Tushar Morzaria said on October 30.