ITG CEO Troise Promises Full Business Review by Second Quarter

  • ITG board has new chairman, board members following fine
  • Troise began as CEO of the brokerage firm on Jan. 15

Investment Technology Group Inc. is planning to scrutinize its entire business, as the brokerage seeks to recover from last year’s fine for alleged wrongdoing in its dark pool.

Chief Executive Officer Frank Troise, who began on Jan. 15, promised investors and analysts an “end-to-end” review of ITG by July.

“In less than one month, it is already clear to me that there are multiple opportunities for ITG to grow scale, which is driven by the lever of technology,” Troise said Thursday during the company’s quarterly earnings conference call.

ITG has been working to rebuild its image after paying a $20.3 million fine to the U.S. Securities and Exchange Commission for operating a proprietary trading desk that used knowledge of customers’ trade requests for its own benefit. The company’s review, Troise said, would touch on its business in asset classes including stocks, currencies and bonds as well as its technology operations.

The brokerage firm reported a quarterly loss that was worse than anticipated. ITG reported an adjusted loss of 7 cents a share in the fourth quarter compared to an average estimated loss of 3 cents a share, according to analysts surveyed by Bloomberg. Average daily trading volume in the U.S. was down 34 percent in the quarter, to 125 million shares per day, versus 190 million shares in the same period a year earlier.

In recent months, ITG has made a series of changes to its leadership besides Troise becoming CEO. The company also named Minder Cheng as chairman, and added Lee Shavel, who is retiring as Nasdaq Inc.’s chief financial officer, to its board.

“As expected, it was a challenging quarter for ITG as the company continues to dig itself out from its 2015 issues and rebuild client relationships,” Chris Allen, an analyst at Evercore ISI, wrote in a report.

Shares of ITG lost 2 percent to $16.42 as of 12:56 p.m. New York time.

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