|Steve Slater; Lionel Laurent; Nishant Kumar; Reuters|
If Jenkins accepts the allegations, made in a lawsuit> filed by
But the U.S. trading desk at the center of the allegations is part of
It comes at a time of mounting discontent among investors. Some say that after almost two years in the CEO hot seat Jenkins is failing to turn around both culture and performance.
"We are concerned about some of the revenue and cost trends and the pace of management implementation," said
Fighting the allegations from the
Investment banks' in-house platforms for buying and selling shares, known as dark pools, are under investigation by authorities in
He said that occurred from 2011 to as recently as April, some 20 months after Jenkins took the helm, unlike other conduct issues the bank has faced, which occurred before he became CEO.
Dark pools let institutional investors trade shares anonymously and only make trading data available afterwards, reducing the chance of information leaking about their trade orders.
Trading at the venues, rather than on formal stock exchanges, has swelled since 2007, and it is estimated that more than 40 percent of all U.S. equities trades are executed in one of the several dozen dark pools in operation.
Potentially most damaging in Schneiderman's complaint is that
U.S. asset manager Alliance Bernstein said it suspended activity with the LX dark pool after the lawsuit was filed, and more clients have pulled out, industry sources said.
Liquidity profiling allowed
Some high-frequency traders try to get an edge from speed and technology to detect large orders coming in and trading ahead of them. As a result, the big institutional investors often want to avoid trading with them and
But Schneiderman said
Barclays LX had its origins at
White has been taken off his day-to-day role and is helping with the bank's internal investigation, people familiar with the matter said. White declined to comment via a
Jenkins, a retail banker, was propelled to CEO in
There are also concerns around the bank's operating performance, analysts and investors said.
When Jenkins presented his first strategic plan in
Equities brought in 2.7 billion pounds in revenues last year, up by almost a third from 2010 and lifting its share of the investment bank revenue to 25 percent from 15 percent.
The electronic equities business was likely to have brought in about
The problem for Jenkins, given his pledge to cast off areas where conduct falls short, is that shutting electronic equities would be near impossible without damaging the rest of the equities operation, which is a low-margin business based on huge order flow, industry sources said.
Attempts to downsize it could also exacerbate tensions between former Lehman Brothers staff who dominate
|Copyright:||(c) 2014 ProQuest Information and Learning Company; All Rights Reserved.||Source:||Proquest LLC|