Credit Suisse in Tentative Settlement on Its 'Dark Pool'
September 14 2015 - 3:40PM
Dow Jones News
Credit Suisse Group AG, one of the biggest operators of a "dark
pool," reached a tentative agreement to pay around $85 million to
New York and federal authorities to resolve allegations of
wrongdoing in its private trading venue, according to a person
familiar with the matter.
Credit Suisse is expect to pay about $30 million in fines to the
New York Attorney General and around $55 million in fines and the
return of funds tied to the alleged wrongdoing to the Securities
and Exchange Commission, the person said.
The settlement, which is still being negotiated and could fall
apart, could be announced by the end of September, according to the
person.
A Credit Suisse representative declined to comment.
Dark pools, which allow buyers and sellers to swap shares with
greater anonymity than they can on the stock market, have come
under scrutiny from regulators in the past several years, and
enforcement activity has been heating up.
Investment Technology Group Inc., a New York brokerage, said
last month it had set aside $20.3 million to settle allegations of
wrongdoing related to its dark pool, Posit, with the SEC.
The largest case before that was against UBS Group AG, which in
January agreed to pay $14 million to settle allegations with the
SEC that it created an uneven playing field inside its dark pool.
UBS neither admitted nor denied the SEC's allegations in its
settlement
Barclays PLC is also in negotiations with the New York Attorney
General and the SEC to settle allegations related to its dark pool,
according to people familiar with the matter. Barclay's proposed a
fine amount last week to the attorney general's office but
officials there viewed the number as low, one of the people said.
The bank could therefore settle separately with the SEC while the
attorney general's investigation remains pending, according to the
person.
A Barclays representative declined to comment.
The Credit Suisse settlement was reported earlier by Bloomberg
News.
--Bradley Hope contributed to this article.
Write to Christopher M. Matthews at
christopher.matthews@wsj.com
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(END) Dow Jones Newswires
September 14, 2015 15:25 ET (19:25 GMT)
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