Major brokers are shutting down their connections to a dark pool run by Barclays following accusations of fraud against the bank in a lawsuit filed Wednesday by the New York Attorney General, according to people familiar with the matter.
Broker-dealers including Deutsche Bank, Royal Bank of Canada and ITG have removed connections to the dark pool, called Barclays LX, from their routing systems, the people said. In some cases, the decision was a precautionary measure after the lawsuit was filed and in others it was the result of requests from large institutional investors, they said.