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US SEC issued a fine of 12 million US dollars

November 08, 2018 19:25
source: Huizhong Information
edit:Eastern Fortune Network

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Summary
[US SEC issued a $12 million fine for dark pool trading] The US Securities and Exchange Commission (SEC) recently announced that it had imposed a fine of $12 million on ITG, an independent enforcement broker and financial technology provider, to settle its allegations. Because of its subsidiary AlterNet Securities Inc. Misleading users when operating "dark pools".

The US Securities and Exchange Commission (SEC) recently announced that it had imposed a $12 million fine on ITG, an independent enforcement broker and financial technology provider, for its alleged subsidiary AlterNet Securities Inc. Misleading users when operating "dark pools".

ITG neither acknowledged nor denied the allegation.

The SEC announced that the alleged violation occurred between 2009 and the end of 2016. In the case, the SEC investigation found that ITG allowed high-frequency traders to interact with investor orders in dark pools. On the other hand, it is also found that the confidential information of the customer transaction is shared internally by the client of the algorithm transaction.

The SEC found that ITG misled the user and promised not to disclose the anonymous data of its dark pool platform POSIT to high-frequency traders.

The SEC also found that ITG divided the dark pool into two separate pools for more than four years, and these pools did not provide the same advanced features as the company promised. This also prevents some of the orders in the two pools from interacting with each other. However, ITG did not disclose this.

The settlement is the second settlement of ITG's cooperation with US regulators over the past three years. In August 2015, ITG was fined $20.3 million. Under the first settlement agreement, ITG admitted to running a secret trading desk to obtain confidential client information from the US dark pool.

Oseph Sansone, head of market abuse at the US Securities and Exchange Commission's law enforcement department, said, "In contrast to the guarantees for dark pool users, ITG cannot ensure that transaction information is protected and in some cases uses this information to develop business. Our organization will continue Review the dark pool to ensure it protects customer transaction information and operates under the securities laws."

Dark pools are private electronic trading websites that allow institutional investors to trade large amounts of stock anonymously and are not seen by other traders until the order is executed. The hidden price tag is designed to help investors trade large amounts of stock without causing a big reaction from the market.

In recent years, dark pools have received increasing attention in the absence of transaction transparency, fair considerations, and the possibility that some dark pool users may be exploited by exchanges and lobby groups.

(Article source: Huizhong Information)

                (Editor: DF134)

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