The Securities and Exchange Commission today announced settled charges against broker-dealer Liquidnet Inc., an operator of multiple alternative trading systems (ATSs), for failing to have necessary controls and procedures regarding market access, for failing to protect confidential subscriber trading information, and for related disclosure failures.
Liquidnet agreed to pay a $5 million civil penalty to resolve the SEC’s charges.
As an ATS operator that provides market access to non-broker-dealers, Liquidnet is subject to the market access rule, which requires it to have a system of controls and procedures to prevent the entry of orders that would exceed appropriate credit thresholds for its customers.
The SEC’s order finds that, for a number of years, Liquidnet violated the market access rule by, among…
Read More
