ITG Replaces CEO Gasser as Dark Pool Settlement with SEC Nears

Aug 3 2015 | 11:04am ET

Investment Technology Group, better known as ITG, has replaced CEO Bob Gasser with board member Jarret Lilien, effective immediately.

Lilien will serve in an interim capacity until a replacement is named, the company said. He is the former president and COO of E*Trade Financial. 

Gasser had been chief executive of the independent broker since 2006.

“We are very pleased that Jarrett has agreed to serve as interim CEO while we consider our options for a permanent CEO,” said Maureen O’Hara, chairman of the board of ITG, in the statement. “With Jarrett and the remainder of the executive team we are in capable hands as we seek to ensure a smooth management transition.”

ITG recently disclosed an investigation by the SEC regarding the company’s activities as a dark pool operator. Specifically, an ITG market-making division allegedly traded using information not available to other customers of ITG’s private stock-trading system during 2010-11. The company has been in settlement discussions with the SEC on the matter and said in the statement that it hopes to “expeditiously” finalize the agreement with regulators. 

The announcement comes just ahead of ITG’s second quarter earnings announcement, in which some analysts predict the company will announce a charge of more then $21 million in connection with the potential settlement, which would be a record fine for a dark pool operator. 

ITG is an independent execution broker and research provider that partners with global portfolio managers and traders. The company is well-known for its POSIT crossing network, which was launched in 1987, and has since developed a broad suite of products that cater to hedge funds and other alternative investment managers. 


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