Defendant Name: LavaFlow, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Citigroup Inc.
SIC Code: 6021
CUSIP: 17296742

Initial Case Details

Legal Case Name In the Matter of LavaFlow, Inc.
First Document Date 25-Jul-2014
Initial Filing Format Administrative Action
File Number 3-15985
Allegation Type Broker Dealer

Violations Alleged

Other
• Rule 301(b)(2), 301(b)(10) Regulation ATS

Related Violations Alleged

LavaFlow, Inc. is alleged to have aided and abetted Lava Trading, Inc.'s violation of Section 15(a) Exchange Act.
LavaFlow, Inc. is alleged to have caused Lava Trading, Inc.'s violation of Section 15(a) Exchange Act.

Resolutions

First Resolution Date 25-Jul-2014
Headline Total Penalty and Disgorgement $5,000,000

Related Documents:

2014-147 25-Jul-2014 Press Release--Administrative Proceeding
Citigroup Business Unit Charged With Failing to Protect Confidential Subscriber Data While Operating Alternative Trading System
On July 25, 2014, the SEC announced that it "charged a Citigroup business unit operating an alternative trading system (ATS) with failing to protect confidential trading data of its subscribers."
34-72673 25-Jul-2014 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to 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 July 25, 2014, the SEC instituted settled administrative and cease-and-desist proceedings against LavaFlow, Inc. According to the SEC: "This proceeding concerns the LavaFlow ECN, an alternative trading system ('ATS') operated by LavaFlow, a registered broker-dealer.... LavaFlow violated Rule 301(b)(10) [of Regulation ATS] from at least March 2008 through March 2011 by failing to establish adequate safeguards and procedures to protect the LavaFlow ECN subscribers' confidential trading information."