Credit Suisse Group A.G. will pay more than US$80 million to settle state US claims it did not fully disclose to its clients how it operated its dark pool.
Bloomberg is reporting the Swiss bank will pay more than US$50 million in fines and disgorgement in what would be a record dark-pool settlement with the Securities and Exchange Commission, as well as US$30 million to the New York Attorney General.
Dark pools, where supply and demand is kept private and only details of executed trades are made public, account for nearly one-fifth of trading in the US$23 trillion US stock market.
Credit Suisse’s Crossfinder platform is the largest alternative trading system in the US.
A deal is expected by early October, a person familiar with the matter was quoted as saying.
Such a settlement would be the first for New York Attorney General Eric Schneiderman, as part of his 18-month investigation into whether US stock exchanges and Wall Street dark pools provide improper advantages to high-frequency traders.
He also sued Barclays Plc. in June 2014, alleging it lied to its customers about what high-frequency trading firms were doing inside Barclay’s platform.
Barclays, which declined to comment, has publicly denied the charges and has been fighting the case in court.
Schneiderman and Barclays are negotiating a possible settlement, according to a person with knowledge of the matter.
The SEC could settle with the bank ahead of the attorney general’s office, this person said.
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