Barclays and Credit Suisse to Pay Record Fine to the SEC Regarding Dark Pool Trading

Barclays and Credit Suisse have settled federal and state charges that they misled investors in their dark pools, and Barclays admitted it broke the law. The firms must pay a combined total of $154.3 million. Both are alleged to have misled investors in the dark pools, saying they would be protected from predatory high-frequency trading tactics. Dark pools are private exchanges or forums for trading securities, unlike stock exchanges, they are not accessible by the investing public and are known for their lack of transparency. Barclays is to pay $70 million split evenly between the Securities and Exchange Commission (SEC) and New York state. Credit Suisse will pay a $60 million fine split between the regulators, plus an additional $24 million in disgorgement to the SEC for executing 117 million illegal sub-penny orders out of its dark pool known as “Crossfinder.”Credit Suisse will neither admit nor deny the allegations as part of the settlement.

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