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Aug 24, 2015

ITG dark pool volume fell by nearly half following record fine

By John McCrank

(Reuters) – Volume in Investment Technology Group’s
private stock trading venue fell by nearly half in the
week-and-a-half after the brokerage disclosed it was near a
record settlement with regulators over violations in its
so-called “dark pool,” industry data showed.

ITG announced on July 29 it had set aside $20.3 million to
settle charges it ran a secret proprietary trading desk that
profited from confidential customer information within its
private stock trading venue, or “dark pool,” in 2010 and into
2011.

Aug 20, 2015

NYSE plan to update private data feed draws criticism from IEX

NEW YORK (Reuters) – Upstart stock trading venue IEX Group on Thursday criticized a plan by the New York Stock Exchange to give a more complete view of transactions executed on the exchange only to firms that pay a premium for that service.

“It’s a fundamental issue about fairness and transparency,” said John Ramsay, chief market policy officer at IEX, and former head of the U.S. Security and Exchange Commission’s Division of Trading and Markets.

Aug 12, 2015

ITG to pay record fine for ‘dark pool’ violations

Aug 12 (Reuters) – Brokerage firm Investment Technology
Group agreed to pay $20.3 million to settle charges it
ran a secret trading desk that profited off of confidential
customer information within its “dark pool,” the U.S. Securities
and Exchange Commission said on Wednesday.

ITG has always billed itself as an agency broker, meaning it
only trades on behalf of its clients, including matching buy and
sell orders within POSIT, the company’s private stock trading
venue, or “dark pool.”

Aug 10, 2015

BATS gets regulatory nod for second U.S. options exchange

NEW YORK, Aug 10 (Reuters) – BATS Global Markets said on
Monday it has received regulatory approval to open its second
U.S. options exchange, set to be launched on Nov. 2, as the
exchange operator tries to win a bigger share of the U.S.
market.

EDGX Options will be the 13th U.S. options exchange.
Incoming options orders will be prioritized on a pro rata basis,
which means they will be sorted by price, and if there are two
or more orders at the best price, trades will be allocated
proportionally according to size. On BATS’s existing options
exchange, BZX Options, orders are prioritized based on price and
the time they entered the market.

Aug 5, 2015

ICE nears Singapore launch as profit tops views

Aug 5 (Reuters) – Intercontinental Exchange Inc
reported a higher-than-expected quarterly profit on Wednesday,
helped by increased market data and listing revenue, and said it
plans to launch its Singapore futures exchange and clearing
house in the fourth quarter.

ICE, which began as an energy exchange in 2000 and has
expanded through acquisitions of companies including the New
York Board of Trade and the New York Stock Exchange, said it
earned $283 million, or $2.54 a share, in the second quarter,
compared with $226 million, or $1.95 a share, a year earlier.

Aug 5, 2015

Electronic trading firm Virtu Financial makes inroads in China

NEW YORK, Aug 5 (Reuters) – Electronic trading company Virtu
Financial Inc on Wednesday announced an agreement with
a major Chinese brokerage firm that has allowed it to begin
making markets, providing two-sided quotes to help ease trading,
in that country.

Virtu, a global market maker in equities, fixed income,
currencies and commodities markets, did not name the new
partner. It did say the introduction came from Singapore state
investment firm Temasek, which took a stake of around 10 percent
in Virtu in December.

Jul 30, 2015

Exclusive: Market maker Arxis hires ex-Morgan Stanley exec Dweck

NEW YORK (Reuters) – Arxis Capital, the market making firm formed last year by former Bank of America Corp employees and ex-Knight Capital chief Thomas Joyce, said on Thursday it hired Jay Dweck as chief technology officer and head of rates and currency trading.

Dweck was previously a managing director at Morgan Stanley, where he was head of strategies and technology for institutional securities, as well as at Goldman Sachs Group, where he headed core strategies and then equities strategies.

Jul 30, 2015

ITG shares plunge on likely dark pool settlement with regulators

By John McCrank

(Reuters) – Shares of brokerage Investment Technology Group
were down more than 20 percent on Thursday after the
company said it had set aside $20.3 million for a probable
settlement with regulators related to how it ran its “dark
pool.”

ITG disclosed late on Wednesday that the U.S. Securities and
Exchange Commission was investigating the lack of disclosure by
the firm to its clients that a subsidiary of the agency broker
was trading against client orders within ITG’s private stock
trading venue, or “dark pool.”

Jul 30, 2015

BATS takes step to crack down promptly on market manipulation

NEW YORK (Reuters) – Exchange operator BATS Global Markets plans to put a rule in place that would allow it to crack down more promptly on manipulative trading behavior on its exchanges.

BATS said on Thursday its “Client Suspension Rule,” which requires approval from the U.S. Securities and Exchange Commission, would allow the company to halt manipulative conduct within weeks of detection, rather than the years it takes under the current regulatory process.

Jul 29, 2015

ITG sets aside $20.3 million related to dark pool investigation

NEW YORK (Reuters) – Broker dealer Investment Technology Group said on Wednesday it set aside $20.3 million for a probable settlement with the U.S. Securities and Exchange Commission over rule violations related to its private stock trading venue.

The settlement would be a record amount handed out by the SEC related to the operation of a private stock trading platform, or “dark pool.”