ITG to pay $20.3 million to settle SEC charges that it ran secret trading desk
Investment Technology Group Inc. will pay a record $20.3 million to settle charges that it ran a secret trading desk that used confidential customer trading information for profit, including bets against its customers.
The U.S. Securities and Exchange Commission says ITG earned nearly $2.1 million secretly trading data gleaned from its own customers between 2010 and 2011. The SEC says ITG will pay back those earnings, plus a penalty of $18 million and more than $256,000 in interest. The settlement is the largest amount paid by an alternative trading system.
In settling the case, the SEC says that ITG admitted wrongdoing. ITG, based in New York, says it is working to regain its trust with customers and shareholders.
Shares of ITG fell more than 6 percent in morning trading Wednesday.