Defendant Name: Barclays Capital Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Barclays PLC
SIC Code: 6029
CUSIP: 06738E20

Document Reference: 33-10010

Document Details

Legal Case Name In the Matter of Barclays Capital, Inc.
Document Name Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date 31-Jan-2016
Document Format Administrative Proceeding
File Number 3-17077
Allegation Type Broker Dealer
Document Summary On January 31, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against Barclays Capital Inc. ("Barclays"). According to the SEC: "Barclays is the owner and operator of Barclays LX ("LX"), an alternative trading system ('ATS') that operates as a 'dark pool.' LX accepts, matches, and executes orders from clients (subscribers that access LX through Barclays' trading algorithms or order router only) and direct subscribers (subscribers that access LX directly, or in combination with Barclays' algorithms and/or order router) (collectively, 'LX subscribers' or 'subscribers') to buy and sell NMS stocks. As of May 2014, LX was the nation's second largest NMS stock ATS. From December 2011 through June 2014 (the 'relevant period'), Barclays violated the federal securities laws and regulations arising from its operation and marketing of LX.... In particular, Barclays made materially misleading statements and omitted to state certain material facts necessary to make statements made not misleading concerning a) the operation of an LX product feature called Liquidity Profiling, which Barclays described as a 'powerful tool to proactively monitor LX' and as a 'sophisticated surveillance framework that protects clients from predatory trading' and b) the market data feeds that it used in LX. In addition, Barclays violated the federal securities laws and regulations related to its market access and its operation of LX, including by failing to establish adequate safeguards and procedures to protect subscribers' confidential trading information, and to adopt and implement adequate procedures to ensure that such safeguards and procedures are followed."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Various undertakings
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:

Civil Penalty

Individual:     $35,000,000.00 Shared:    

Related Documents:

33-10011 31-Jan-2016 Administrative Proceeding
Order Under Rule 506(d) of the Securities Act of 1933 Granting a Waiver of the Rule 506(d)(1)(iv)(B) Disqualification Provision
On January 31, 2016, the SEC granted a waiver to Barclays Capital Inc. ("BCI") from the application of the disqualification provision of Rule 506(d)(1)(iv)(B) under the Securities Act resulting from the entry of the SEC's previous Order against Barclays Capital Inc. According to the SEC: "the Commission has determined that BCI has made a showing of good cause under Rule 506(d)(2)(ii) that it is not necessary under the circumstances to deny reliance on Rule 506 of Regulation D by reason of the entry of the Order against BCI."
2016-16_Barclays 31-Jan-2016 Press Release--Administrative Proceeding
Barclays, Credit Suisse Charged With Dark Pool Violations; Firms Collectively Paying More Than $150 Million to Settle Cases
On January 31, 2016, the SEC announced that "Barclays Capital Inc. and Credit Suisse Securities (USA) LLC have agreed to settle separate cases finding that they violated federal securities laws while operating alternative trading systems known as dark pools and Credit Suisse's Light Pool."