Defendant Name: ITG Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Investment Technology Group, Inc.
SIC Code: 6211
CUSIP: 46145F10

Initial Case Details

Legal Case Name In the Matter of ITG Inc. and AlterNet Securities, Inc.
First Document Date 07-Nov-2018
Initial Filing Format Administrative Action
File Number 3-18887
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• Rules 301(b)(2), 301(b)(10) Regulation ATS

Resolutions

First Resolution Date 07-Nov-2018
Headline Total Penalty and Disgorgement $12,000,000

Related Documents:

33-10572 07-Nov-2018 Administrative Proceeding
Order Instituting Administrative and Cease-And-Desist Proceedings, Pursuant to 8A of the Securities Act of 1933, and Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings and imposing Remedial Sanctions and a Cease-and-Desist Order
On November 7, 2018, the SEC instituted administrative and cease-and-desist proceedings and determined to accept an Offer of Settlement by Respondents. The SEC stated: "This matter involves violations of the federal securities laws by ITG Inc. and its affiliated broker-dealer AlterNet in connection with the operation of POSIT, an alternative trading system ("ATS") that is also commonly referred to as a 'dark pool.'"
2018-256 07-Nov-2018 Press Release--Administrative Proceeding
SEC Charges ITG With Misleading Dark Pool Subscribers
The SEC stated: "The Securities and Exchange Commission today announced that ITG Inc. and its affiliate AlterNet Securities Inc. have agreed to pay $12 million to settle charges arising from ITG's misstatements and omission about the operation of the firm's dark pool, POSIT, and ITG's failure to establish adequate safeguards and procedures to protect POSIT subscribers' confidential trading information."

Other Defendants in Action:

AlterNet Securities, Inc.