NEW YORK (Reuters) – Liquidnet agreed to pay a $5 million civil fine to resolve U.S. Securities and Exchange Commission charges that the broker-dealer lacked necessary controls regarding market access, and failed to protect confidential subscriber trading information.
The SEC said on Friday that Liquidnet violated a rule governing alternative trading systems operators by setting inappropriate credit thresholds for customers, including by having a default of $1 billion.
Without admitting wrongdoing, Liquidnet also agreed to a censure as part of the settlement. The SEC said Liquidnet has also undertaken remedial efforts, including hiring an outside consultant to address shortcomings.
