Two securities exchanges have agreed to pay a total $14 million to settle federal charges of giving inaccurate information to trading firms about the buy and sell orders they used.
The Securities and Exchange Commission announced the settlement Monday in the civil case with the EDGA and EDGX exchanges. The SEC said it was the largest penalty it had imposed on a U.S. stock exchange and the first case involving types of trading orders used.
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The exchanges gave full information about their ranking of orders by price and other data to some of their trading firm members but not to all, the SEC said. That created a risk that not all investors could understand how the orders worked, the agency said.
The exchanges neither admitted nor denied wrongdoing.