Barclays is set to be fined $70m (£49m) for misleading investors about its US "dark pool" trading operations, says the New York Attorney General's office.
The UK-based bank has been accused of not making it clear to its clients that particularly aggressive traders, known as high frequency traders, were using the private platform.
"Dark pool" trading operations allow investors to trade large blocks of shares but keep the price private.
The bank declined to comment.
A formal announcement, including a settlement with Credit Suisse also over dark pool trading, is expected on Monday from the New York Attorney General (NYAG) and the Securities and Exchange Commission (SEC).
As well as the fine, Barclays is expected to admit having broken the law, according to the NYAG.
Credit Suisse is likely to pay a penalty of $84.3m but will neither admit or deny any wrongdoing.
"These cases mark the first major victory in the fight against fraud in dark pool trading that began when we first sued Barclays," said Eric Schneiderman, the New York attorney general.
He added that "co-ordinated and aggressive government action" had led to "admissions of wrongdoing, and meaningful reforms to protect investors from predatory, high-frequency traders".
"We will continue to take the fight to those who aim to rig the system and those who look the other way."
Barclays lost an attempt to have the case dismissed.
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