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Jul 25, 2014

Citigroup unit to pay $5 million to settle U.S. SEC charges

July 25 (Reuters) – A private trading venue owned by
Citigroup will pay a $5 million penalty to settle charges
that it failed to protect customers’ data, marking the latest
case in a crackdown by U.S. regulators over alleged market rule
violations.

The Securities and Exchange Commission said the unit,
LavaFlow Inc., is settling the civil case without admitting or
denying the charges.

Jul 17, 2014

Exclusive: SEC targets 10 firms in high frequency trading probe – SEC document

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission has been seeking information on 10 registered broker dealers as part of an ongoing investigation into high-frequency trading strategies, according to an internal SEC document reviewed by Reuters.

The regulator told its staff in late March that it was interested in seeing any tips, complaints, or referrals that they receive concerning the brokers and high frequency trading.

Jul 17, 2014

US SEC targets 10 firms in high frequency trading probe – SEC document

NEW YORK, July 17 (Reuters) – The U.S. Securities and
Exchange Commission has been seeking information on 10
registered broker dealers as part of an ongoing investigation
into high-frequency trading strategies, according to an internal
SEC document reviewed by Reuters.

The regulator told its staff in late March that it was
interested in seeing any tips, complaints, or referrals that
they receive concerning the brokers and high frequency trading.

Jul 17, 2014

U.S. SEC scuttles Nasdaq options rebate plan

NEW YORK, July 17 (Reuters) – The U.S. Securities and
Exchange Commission has denied a plan by Nasdaq OMX Group Inc
to offer rebates to some of the biggest customers of
one of its options exchanges, based on the amount of trading
they do across all three of Nasdaq’s options markets.

Nasdaq’s plan would have run afoul of rules stating that an
exchange’s fees cannot be unfairly discriminatory or hinder
competition, the SEC said in an order posted on its website on
Thursday. (1.usa.gov/UcwDvi)

Jul 1, 2014

NYSE to run software tests for trading firms ahead of Alibaba IPO

NEW YORK (Reuters) – The New York Stock Exchange said it will hold a test run of Alibaba Group Holding’s (IPO-ALIB.N: Quote, Profile, Research, Stock Buzz) highly anticipated market debut, reflecting the securities industry’s focus on risk controls after a raft of technical snafus in recent years.

NYSE, owned by Intercontinental Exchange Inc (ICE.N: Quote, Profile, Research, Stock Buzz), said in a note to traders on Tuesday it would allow firms to test their trading software ahead of the initial public offering of Alibaba on July 12 for a listing on the New York Stock Exchange.

Jun 26, 2014

Alibaba picks New York Stock Exchange for U.S. IPO

SAN FRANCISCO/NEW YORK (Reuters) – Chinese e-commerce company Alibaba Group Holding Ltd has decided to list on the New York Stock Exchange, it said on Thursday, dealing a blow to the rival Nasdaq bourse.

Alibaba, which handles more than 80 percent of online retail transactions in the world’s second-largest economy, will list under the symbol “BABA,” the company said in an updated initial public offering prospectus.

Jun 26, 2014

New York attorney general accuses Barclays of ‘dark pool’ fraud

NEW YORK, June 26 (Reuters) – The New York State’s attorney
general has filed a securities fraud lawsuit against Barclays
, accusing the British bank of giving an unfair edge in
the United States to high-frequency trading clients even as it
claimed to be protecting other customers from such traders.

The lawsuit, which relates to Barclays’ LX Liquidity Cross
‘dark pool’ alternative trading system, alleges that the bank
promised to get the best possible prices for customers looking
to buy or sell shares but instead took steps that maximized the
bank’s profits and executed nearly all of its customers’ stock
orders on LX instead of on exchanges or other venues that might
have offered better prices.

Jun 25, 2014

New York AG slaps Barclays with securities fraud suit

NEW YORK (Reuters) – The New York Attorney General on Wednesday filed a securities fraud lawsuit against Barclays PLC (BARC.L: Quote, Profile, Research, Stock Buzz) for misrepresenting the safety of its U.S.-based alternative trading system, or “dark pool,” to investors.

The lawsuit alleges that in order to increase business in its dark pool, Barclays has favored high-frequency traders and has actively sought to attract them by giving them systematic advantages over other investors trading in the pool.

Jun 18, 2014

Nasdaq says making progress on system that led to August outage

NEW YORK (Reuters) – OMX Group (NDAQ.O: Quote, Profile, Research, Stock Buzz) has made changes to the system that caused a three-hour trading halt in Nasdaq-listed stocks last summer, to make it more robust and to limit possible future outages to 10 minutes, a company executive said on Wednesday.

The exchange operator now hopes to continue running the system, called a Securities Information Processor (SIP), reversing direction from November when it said the risks of doing so would outweigh the rewards, said Brian Hyndman, Nasdaq’s head of global information services. [ID:nL2N0KO1AK]

Jun 16, 2014

EXCLUSIVE: Friedman could become Nasdaq CEO next year – sources

NEW YORK (Reuters) – Nasdaq OMX Group Inc (NDAQ.O: Quote, Profile, Research) lured back former Chief Financial Officer Adena Friedman as co-president with the understanding that she will succeed Chief Executive Bob Greifeld, possibly as soon as next year, sources familiar with the matter said.

There is no written agreement that lays out such a timeline. And Greifeld, 56, who has been the financial market company’s CEO for 11 years, could still stay until 2017, when his contract ends, the sources said.