Barclays share price down as bank agrees to pay $50m in US settlement

on Feb 19, 2016
Updated: Oct 21, 2019
Listen

Barclays (LON:BARC) has agreed to pay $50 million (£34.8 million) to settle a US lawsuit claiming it rigged its foreign exchange trading system to reject client orders that would be unprofitable for the British bank.

The preliminary, all-cash settlement with investors led by Axiom Investment Advisors LLC was disclosed in papers filed on Wednesday night in the US District Court in Manhattan, and requires a judge’s approval. It comes three months after Barclays agreed to pay $150 million and fire a senior electronic trading official to resolve similar claims by the New York State Department of Financial Services.

Barclays was sued by Axiom in November. The lawsuit arose from the lender’s Last Look platform meant to deter traders from exploiting tiny delays, often just a few milliseconds, in the flow of information within the marketplace. The investment-management firm accused Barclays of using the system to reject unprofitable trades and lying to clients about why their transactions were turned down. Axiom said this caused “significant damages” for the bank’s foreign exchange counterparties, and amounted to breach of contract or fraud.
George Zelcs, a lawyer for Axiom, called the latest Barclays accord “a meaningful initial settlement that hopefully allows us to move forward in other cases.” Barclays pledged to provide information that will assist Axiom with similar claims against other banks.
Barclays’ share price opened lower this morning. Following a brief increase, the stock eased again to trade 0.31 percent down at 161.25p as of 08:22 GMT. The FTSE 100 index had meanwhile risen 0.02 percent to 5,973.06 points.
As of 08:36 GMT, Friday, 19 February, Barclays share price is 162.97p.

Ad

Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.

10/10

79% of retail CFD accounts lose money