Sam Mamudi

The U.S. Securities and Exchange Commission is preparing a sweeping set of rules to target mutual funds whose rapid growth and migration into more complex strategies could pose risks to the financial system, the agency’s chairman said.

Money managers and brokers shunned Barclays Plc’s dark pool, and Chief Executive Officer Antony Jenkins pledged an urgent inquiry, after the bank was accused of lying to clients about high-frequency trading on the venue.

Barclays was so bent on lifting its private trading venue to the upper ranks of Wall Street dark pools that it lied to customers and masked the role of high- frequency traders, according to New York’s attorney general.

Bank of America Corp. is dismantling an electronic market-making unit created last year to serve the lender’s Merrill Lynch wealth-management division, said two people with knowledge of the decision.