A business unit of Citigroup will pay $5 million to settle civil charges that one of its private trading venues violated federal law by failing to protect its clients' confidential trading data, U.S. regulators said Friday.
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The Securities and Exchange Commission said that the unit, LavaFlow Inc, is settling the case without admitting or denying the charges.
This marks the latest in a string of enforcement cases by the SEC in recent years targeting alternative trading systems, a type of trading platform that competes with traditional exchanges.
The SEC said the case represents the largest-ever penalty imposed so far on an alternative trading system.