SEC $12mn Mislead Dark Pool

On Nov. 7, SEC fined ITG $12mn for misleading about dark pool.

  • Charged ITG Inc. and its affiliate AlterNet for misleading dark pool subscribers.
  • Did not protect trading information and sometimes used in an attempt to grow.

Alleged Violations

  • Firm made misstatements and omissions, about operation of their pool, POSIT.
  • ITG improperly disclosed confidential dark pool trade information, of its clients.
  • From 2010-15, ITG sent daily top 100 reports, of previous day trading activity.
  • ITG informed some of its high frequency trading firms, they could use top 100
    reports to identify “potential unsatisfied liquidity needs”, within the dark pools.
  • Acted despite informing clients that their trade intention would not be signaled.

Splitting of Pool

  • From 2010-14 ITG split pool into two, which stopped certain orders interacting.
  • This prevented certain orders in the two pools from interacting with each other.
  • ITG failed to disclose separation of pools, by different performance and fill rate.
  • Or about their use of speedbump to slow interactions with high frequency firms.
    despite subscribers questioning whether ITG tiered or segmented the dark pool.


  • ITG and AlterNet to pay $12mn fine, following SEC Aug. 2015 fine.