New York Attorney General Eric Schneiderman has launched an investigation into whether Swiss bank giant Credit Suisse misled investors about its “dark pool” trading platform, The Post has learned.
The probe comes a month after Schneiderman sued Barclays for allegedly lying about the presence of predatory traders in its dark pool. The British bank denied wrongdoing and has asked a judge to dismiss the suit.
Regulators are taking a closer look at dark pools — lightly regulated alternative trading systems — because of concerns that high-frequency traders are leveraging them to their advantage.
Credit Suisse is the operator of the largest bank dark pool in the US, accounting for about 14 percent of all trades, according to data from the Financial Industry Regulatory Authority.
Deutsche Bank and UBS disclosed on Tuesday that the AG’s office was also investigating their dark pools. The Deutsche Bank probe is much further along than the one into UBS, a source said.
Spokespeople for Credit Suisse and Schneiderman declined to comment.