{"id":10530,"date":"2015-07-29T19:58:26","date_gmt":"2015-07-30T00:58:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10530"},"modified":"2015-07-29T19:58:26","modified_gmt":"2015-07-30T00:58:26","slug":"in-latest-market-rigging-scandal-itg-busted-for-frontrunning-clients-in-its-dark-pool","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10530","title":{"rendered":"In Latest Market-Rigging Scandal, ITG Busted For Frontrunning Clients In Its Dark Pool"},"content":{"rendered":"

In Latest Market-Rigging Scandal, ITG Busted For Frontrunning Clients In Its Dark Pool<\/a><\/h3>\n

Last year, first in the aftermath of NYAG’s lawsuit against Barclays followed promptly by Michael Lewis’ “Flash Boys” (which over a year later\u00a0is still a better seller\u00a0<\/a>than “GS Elevator’s<\/em>” attempt to be this generation’s Tucker Max) exposing High Frequency Trading for being nothing more than a sophisticated gimmick enabling market rigging and bulk order frontrunning while pretending to “provide liquidity”, the revulsion against HFTs hit a fever pitch that forced Virtu to postpone its IPO.<\/p>\n

Several months later, because the market kept going higher, people quickly forgot why they were angry at a bunch of vacuum tubes, and Virtu not only re-IPOed (adding another year without a single trading day loss to its roster) but it was taken public by that “humanitarian” protagonist of Flash Boys, Goldman Sachs itself (which was so aghast at the scourge that is HFT it almost, almost, ended its own dark pool and HFT ambitions… before it\u00a0decided to double down on HFT<\/a>).<\/p>\n

However, since the market is once again on the verge of a terminal liquidity seizure with its associated side-effects (see China for details), the authorities needed to remind the “market” just who the scapegoat will be when the next crash finally does come. Which is why earlier today in an unexpected “preliminary second quarter guidance” release, ITG, owner of the Posit dark pool, was just busted with a $22.6 million potential SEC settlement for what appears to have been blatant frontrunning of company clients in its own prop trading pod.<\/p>\n

From the\u00a0release<\/a>:<\/p>\n

\n
During the second quarter of 2015, ITG commenced settlement discussions with the Staff of the Division of Enforcement of the SEC (the \u201cSEC Enforcement Division\u201d) in connection with the SEC\u2019s investigation into a proprietary trading pilot operated within ITG\u2019s AlterNet Securities, Inc. (\u201cAlterNet\u201d) subsidiary for sixteen months in 2010 through mid-2011.<\/div>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

In Latest Market-Rigging Scandal, ITG Busted For Frontrunning Clients In Its Dark Pool Last year, first in the aftermath of NYAG’s lawsuit against Barclays followed promptly by Michael Lewis’ “Flash Boys” (which over a year later\u00a0is still a better seller\u00a0than “GS Elevator’s” attempt to be this generation’s Tucker Max) exposing High Frequency Trading for being […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6036,1838,130,7647,3151,376,400,401,7648,503,7649,7650,7651,7579,7652,4318],"class_list":["post-10530","post","type-post","status-publish","format-standard","hentry","category-economics","tag-b","tag-barclays","tag-china","tag-dark-pools","tag-department-of-justice","tag-goldman-sachs","tag-hft","tag-high-frequency-trading","tag-liquidnet","tag-market-manipulation","tag-pipeline-trading","tag-prop-trading-reg-nms","tag-securities-and-exchange-commission","tag-trading-systems","tag-united-states-attorney","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10530"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10530\/revisions"}],"predecessor-version":[{"id":10531,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10530\/revisions\/10531"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}