ITG settles SEC suit for allegedly misleading dark pool subscribers

ITG settles SEC suit for allegedly misleading dark pool subscribers

By

Senior economics reporter

The Securities and Exchange Commission announced Wednesday that ITG Inc. ITG, +8.09% and its affiliate AlterNet Securities will pay $12 million to settle charges they misled customers about the operation of the firm’s dark pool from 2010 until 2015. “Contrary to assurances it made to dark pool subscribers, ITG failed to ensure that trading information was protected, and in some instances used this information to attempt to grow its business,” said Joseph Sansone, chief of the SEC enforcement division’s market abuse unit. The SEC said that ITG also hid the fact that the dark pool was split into two parts, which had different performance and fill rates. This is the second settlement against the alternative trading system. In 2015, ITG paid $20.3 million to settle charges it operated a secret trading desk.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Related posts