Investment Insights

Updated Tuesday, July 29, 2014 as of 4:39 AM ET

Portfolio - Investment Insights

Barclays Dark Pool Trading Volume Reverses Some Losses Amid Suit

(Bloomberg) -- Barclays saw a rise in the number of U.S. shares traded in its dark pool, paring some of the lossesin the two weeks after it was sued by New York for allegedly lying to customers of the venue.

About 94 million U.S. shares were traded in the dark pool in the week of July 7, up 42% from about 66 million in the previous week, which included the July 4 public holiday, according to data from the Financial Industry Regulatory Authority. The increase follows two weeks of declines from 312 million starting June 23, data show.

Barclays is fighting allegations it lied to customers and masked the role of high-frequency traders as it sought to boost revenues at what used to be Wall Street’s second-largest private-trading venue. The bank said on July 24 that it’s seeking to have New York Attorney General Eric Schneiderman’s June 25 complaint thrown out of court, with the lawsuit based on what it called “clear and substantial factual errors.”

The stock rose 0.4% to 218.95 pence at 11:01 am in London. The shares have dropped 19% this year, making Barclays the worst performer among Britain’s five largest banks.

Barclays said last week that the attorney general’s office also took New York’s securities law -- the Martin Act -- too far in bringing the lawsuit.

“We do not believe this suit is justified, and we have a duty to our shareholders, clients and staff to defend our position,” Barclays said in a statement.

The London-based bank is facing various legal battles around the world over allegations of past misconduct, with a potential bill that could rise to as much as 7 billion pounds ($12 billion) over the next four years, analysts at Nomura led by Chintan Joshi, who has a buy rating on the stock, wrote today in a note to clients.

Barclays’s dark pool dropped out of the 10 largest U.S. venues following two weeks of declines, having previously been second to Credit Suisse Group AG’s Crossfinder, data show. The Zurich-based bank’s trading venue, still ranked No. 1, saw a 28% increase in the week beginning July 7, Finra data show.

Read more:

More in Investment Insights

see all

As Index Fund Assets Spike, Growth in New Funds Remains Sluggish

Index mutual fund assets are at new heights but the pressure to keep costs down deters new entrants, says a Lipper analyst.. more »

How to Learn to Stop Worrying About Rates and Love the Fed

If you’re concerned that the Federal Reserve will derail the bond market when it finally starts raising interest rates, the last two tightening cycles suggest those worries may be overblown. more »

PIMCO Leads in Active ETF Market

With $7.86 billion in assets, PIMCO has the largest share of the active ETF market. While these products are gaining ground, they still make up just a small fraction of the total ETF market and PIMCO has yet to break into the top 10 providers overall. more »

With ETFs, Worldwide Outpaces Domestic Growth

While there has been rapid growth in U.S. ETFs over the last few years, there has been almost exponential growth of these products worldwide. more »

Treasuries Fall First Time in 3 Days as Ukraine Tension Eases

Treasuries fell for the first time in three days, with benchmark 10-year yields rising from a seven-week low, as haven demand ebbed a day after a Malaysian airliner was shot down over Ukraine. more »

U.S. Mutual Funds See $24B in Gains

U.S equity fund assets are near record levels, but in a reversal of last year’s trend, investors are putting more money into bond funds than U.S. stock funds. more »

ETF Assets on the Rise, Top 3 Providers Dominate

The top three players – Blackrock, State Street and Vanguard – currently dominate U.S. ETF market share, holding more than 80% of total assets as of mid-2014, a percentage that has remained relatively unchanged since 2012. more »

Dividends Rise But Companies Still Sitting on Cash

Positive actions like increases and initiations hit a 35-year high for the first half, but payouts are still below the historical average. more »

SEC Aims to Simplify Mutual Fund Disclosures

Amid an outreach overhaul, the agency's Division of Investment Management says it wants asset managers to give advisors and investors a 'clear and concise' picture of their investment strategies. more »

Portfolio Tip: How to Use Covered Calls

Some advisors have found that covered calls outperform bonds and provide savvy selling strategies. more »

Interest in Defined-Benefit Grows Among Small Business Owners

Despite declining numbers, defined-benefit plans are in vogue with small business owners and the advisors who serve them. more »

Which City Is the Next Big Fintech Hub? New York Stakes Its Claim

New York is attracting financial technology startup companies and venture capitalists, who like the proximity to large banks. But watch out for London. more »

Million-Dollar Advice: Know What You Can't Control

Offering just one solution, even if you're an expert on that strategy, will limit your flexibility. more »

Slide Shows