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Barclays and Red Kite settle copper market dispute

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Barclays and Red Kite settle copper market dispute
FILE PHOTO: A Barclays sign is outside a branch of the bank in London, Britain, February 23, 2017. REUTERS/Stefan Wermuth/File Photo   -   Copyright  Stefan Wermuth(Reuters)
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LONDON (Reuters) – British bank Barclays and hedge fund Red Kite Group have settled a legal dispute in which the fund accused the bank of manipulating the copper market and causing it to lose money.

“Legal proceedings between the Red Kite group as Claimants and Barclays Bank PLC as Defendant have been concluded on mutually acceptable terms,” Barclays said in a statement on Thursday, without giving details of the settlement.

Red Kite in 2017 sued Barclays for $850 million, alleging in court documents that the bank’s proprietary traders were able to see the hedge fund’s confidential trading positions on the London Metal Exchange (LME) that were being executed by another division of Barclays.

As a result, Barclays traders executed trades based on that inside knowledge which resulted in profits for Barclays but damaged Red Kite’s interests, the fund alleged at the time.

Barclays denied that its traders were able to access Red Kite’s confidential information. The bank declined to comment further on Thursday, saying the terms were confidential.

A Red Kite spokesman declined to comment.

(Reporting by Zandi Shabalala; Editing by Mark Potter)

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