SEC Charges Dark-Pool Operator for Sharing Confidential Data
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Dark-pool operator eBX LLC agreed to pay an $800,000 penalty to settle charges that it failed to protect customers’ confidential trading information, the Securities and Exchange Commission said.
The payment also settles allegations that eBX, which runs the Level ATS dark pool, failed to tell subscribers that it allowed a technology firm to use data about unexecuted orders, the SEC said today in a statement. The outside company was identified as Lava Trading, a unit of Citigroup Inc. that built the dark pool, in a letter from Level ATS to clients that was obtained by Bloomberg News.