Pipeline Settles With U.S. SEC Over Dark Pool Claims
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Pipeline Trading Systems LLC, the seven-year-old dark pool operator specializing in block trades, will pay $1 million to resolve U.S. claims it failed to provide the confidentiality and liquidity it advertised to customers.
Fred Federspiel, the nuclear physicist who founded Pipeline in 2004, and Alfred Berkeley III, a former Nasdaq Stock Market Inc. president who is Pipeline’s chairman, both agreed to pay $100,000 to settle the claims, the Securities and Exchange Commission said today in an administrative order.