The New York attorney general’s office has extended its probe of alternative trading systems known as dark pools to include banking giants Goldman Sachs and Morgan Stanley, Fox Business Network has reported.
Other firms that are under the scrutiny include Credit Suisse, Deutsche Bank, UBS and Barclays.
The US Securities and Exchange Commission has also launched an inquiry into dark pool trading.
The New York attorney general’s office recently filed civil charges against Barclays Bank for, among other possible violations, allegedly failing to disclose how many trades were being conducted by high-frequency types.
Barclays has denied the charges, and has hired a coterie of high-powered law firms that specialize in white collar crimes to launch a defense, people close to the matter told Fox Business Network.