ITG Says U.S. Market Share Has Plunged After Announcing SEC Fine

Investment Technology Group Inc. said its market share has fallen by a quarter in the U.S. after revealing that it may have to pay the largest fine ever imposed on the operator of a dark pool.

ITG Chief Financial Officer Steven Vigliotti disclosed the figure on an earnings call Tuesday. The company said its electronic brokerage unit had suffered the biggest drop in trading volumes with some clients stopping any of their business from going to ITG’s dark pool. Other customers continue to trade with the broker, but have reduced their orders to its market.

The company’s research, sales and trading division has also suffered. However, ITG’s analytics and platform division, and its international business are broadly unaffected.

New York-based ITG replaced Chief Executive Officer Bob Gasser and General Counsel Mats Goebels on Monday after announcing that it faces a $20.3 million settlement with the Securities and Exchange Commission. The company said last week that a market-making unit it owned traded in its Posit dark pool using information that was not available to customers.

Interim CEO Jarrett Lilien said on Tuesday’s call that he would work to regain customers’ trust.

“With yesterday’s actions, we have moved decisively to assign accountability for the past.” Lilien said. “There’s more work to do to restore confidence with our customers and our shareholders and we will do this through our actions.”

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