• 09 Jun 2014 at 2:48 PM

Dark Pool In Trouble For Bragging On Its Clients

This is not allowed, at least in conversation with entities other than the SEC or FINRA.

Liquidnet Inc. has agreed to pay a $2 million penalty to settle charges that the brokerage firm improperly shared information about some customers as it sought to expand its capital-markets business, the Securities and Exchange Commission said….

In June 2012, Liquidnet told members of its trading network about the SEC investigation, with Mr. Merrin saying in an email to Liquidnet members reviewed by The Wall Street Journal at that time that the SEC had raised questions about the firm’s practices during an inspection. Liquidnet said it had shared “descriptive characteristics” about its members, investors who buy and sell stocks on the firm’s trading network, to companies it hoped would use the platform to raise capital.

Dark Pool Operator Liquidnet to Pay $2 Million to Settle SEC Charges [WSJ]

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  1. Posted by Guest | June 9, 2014 at 5:19 PM

    So I thought their big selling point was that all matches were anonymous and they didn't share client info with anyone.

  2. Posted by Guest | June 9, 2014 at 5:21 PM

    wonder how IEX talks about itself