(NEW YORK) — Two major global banks will soon pay a hefty price.
According to BBC, both Credit Suisse and Barclays will pay more than $154 million total in fines to settle state and federal investigations for allegations they misrepresented their “dark pool” or private trading exchanges.
The New York Attorney General’s Office said the banks did not disclose to clients that high-frequency traders were using the private operations.
When investors use dark pool forums, they are able to trade large blocks of shares while still keeping the price away from the investing public.
Barclays has reportedly agreed to pay $70 million, according to the New York Times, and Credit Suisse will pay $60 million as well as $24.3 million to the S.E.C. for trading violations.
Barclays was sued by Scneiderman’s office in June 2014 for its alleged dark pool fraud.
“These cases mark the first major victory in the fight against fraud in dark pool trading that began when we first sued Barclays: coordinated and aggressive government action, admissions of wrongdoing, and meaningful reforms to protect investors from predatory, high-frequency traders,” New York Attorney General Eric Schneiderman said. “We will continue to take the fight to those who aim to rig the system and those who look the other way.”
The settlements from both banks are scheduled to be announced on Monday during a news conference from Schneiderman.
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