ITG Names Cheng as Chairman Amid Cleanup From Dark-Pool Fineby
The former BlackRock executive has been on board since 2010
JPMorgan's Frank Troise took over as CEO on Jan. 15, ITG says
Investment Technology Group Inc. named Minder Cheng as chairman, the latest management change at a brokerage seeking to move past last year’s fine for alleged misdeeds at its dark pool.
Cheng, who once worked at BlackRock Inc. and Barclays Global Investors, has been on ITG’s board since 2010. His new role as chairman was announced in a Tuesday statement that also said Frank Troise, a former JPMorgan Chase & Co. executive, joined as chief executive officer on Jan. 15.
ITG is trying to rehabilitate its image after paying a $20.3 million penalty to the U.S. Securities and Exchange Commission, the largest of its kind for a dark pool operator. Former CEO Robert Gasser lost his job and ex-Chairman Maureen O’Hara departed in the aftermath. When Bloomberg News reported Troise would replace Gasser, investors cheered the news, driving the company’s shares up as much as 10 percent on Oct. 16.
The brokerage was fined last year by securities regulators for operating a proprietary trading desk that used knowledge of customers’ trade requests for its own benefit, leveraging data other users of the dark pool didn’t have.
Cheng is also chairman of MediaCrossing Inc., a senior adviser at Executive Networks and an adviser to Armanta Inc. At BlackRock, he was chief investment officer for index equity and capital markets from December 2009 to July 2010. He had a similar role at Barclays Global Investors, which BlackRock bought in 2009.