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[sludgehound]

SEC fines Liquidnet $2M 3 yrs dark pool badness

What next, the Vatican?? Pocket lint fine.

SEC charges dark-pool operator Liquidnet $2 mln for violations

Today 10:51 AM ET (MarketWatch)Print

NEW YORK (MarketWatch) -- The Securities and Exchange Commission charged a New York-based dark pool operator on Friday for failing to conceal confidential trading information of its subscribers. The SEC found that Liquidnet Inc. violated its regulatory obligations and its own promises to its alternative trading system subscribers during a nearly three-year period. Liquidnet is accused of improperly allowing a business unit outside the dark pool operation to access the confidential trading data. Employees in that unit used the confidential information about Liquidnet's dark pool subscribers during marketing presentations and various communications to other customers, said the SEC. Liquidnet has agreed to settle the SEC's charges and pay a $2 million penalty, without admitting or denying the findings. "We will continue to aggressively police broker-dealers who operate an ATS and fail to rigorously ensure the protection of confidential trading information," said Andrew J. Ceresney, director of the SEC Enforcement Division.

-Sital S. Patel; 415-439-6400; [e-mail]

(END) Dow Jones Newswires

June 06, 2014 10:51 ET (14:51 GMT)

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