Credit Suisse Close to $80M Dark Pool Settlement

Sep 14 2015 | 6:45pm ET

Credit Suisse is reportedly settling state and federal allegations that it didn’t disclose details about its dark pool to clients.

The company will pay more than $80 million in fines and disgorgement to settle the matter, according to a Bloomberg article citing a person familiar with the matter. More than $50 million will go to the SEC and the remainder to the New York Attorney General. The final settlement could come in October. 

Dark pools are institutional trading networks where sources of supply and demand are kept anonymous. Only executed trades are made public. The venues are popular among large institutional investors and high-frequency traders because they are able to trade large blocks of securities without risking price slippage. Dark pools accounted for more than 17% of trading on the $23 trillion U.S. stock market in July, noted Bloomberg. 

Credit Suisse’s Crossfinder platform is the largest alternative trading system in the United States. The SEC and New York AG are also pursuing Barclays with similar allegations, which the London-based bank is reportedly contesting in court. 

Meanwhile, other firms have recently settled dark-pool related allegations. In August, ITG agreed to pay $20.3 million to settle charges that confidential customer information was used in its dark pool, and UBS agreed to pay $14.4 million last January to settle allegations regarding disclosures about its dark pool.


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