ITG Enters Into Final Settlement With SEC On Proprietary Trading Pilot Program

(RTTNews) - Investment Technology Group Inc. (ITG), an independent execution broker and research provider, announced that it has reached a final settlement with the Securities and Exchange Commission or "SEC" in connection with a proprietary trading pilot program that operated for 16 months in 2010 through mid-2011.

As per the terms of the settlement, ITG will pay disgorgement of $2.08 million, prejudgment interest of $256,532, and a civil penalty of $18 million.

The settlement is focused on ITG's customer disclosures, Form ATS regulatory filing violations, and customer information controls that related to the pilot program's trading activity, which included (a) crossing against sell-side clients in the company's POSIT system, and (b) violations of ITG's policy and procedures by a former employee. These violations principally involved information breaches for a period of several months in 2010 regarding sell-side parent orders flowing into ITG's algorithms and executions by all customers in non-POSIT markets that were not otherwise available to ITG clients.