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.
First Document Date 12-Jan-2017
Initial Filing Format Administrative Action
File Number 3-17770
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(3)

Resolutions

First Resolution Date 12-Jan-2017
Headline Total Penalty and Disgorgement $24,450,469

Related Documents:

2017-6 12-Jan-2017 Press Release--Administrative Proceeding
ITG Paying $24 Million for Improper Handling of ADRs
On January 12, 2017, the SEC announce a settled proceeding against broker ITG. According to the SEC: "ITG facilitated transactions known as “pre-releases” of ADRs to its counterparties without owning the foreign shares or taking the necessary steps to ensure they were custodied by the counterparty on whose behalf they were being obtained." Andrew M. Calamari, Director of the SEC's New York Regional Office noted that "'ITG’s failure to properly supervise its securities lending desk caused ADRs to be issued that were not backed by actual shares, leaving them ripe for potential market abuse[.]'".
33-10279 12-Jan-2017 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 12, 2017, the SEC instituted a settled proceeding against ITG Inc. According to the SEC: "These proceedings arise out of ITG’s improper practices involving the pre-release of American Depositary Receipts (“ADRs”). [...] The result of this conduct was the issuance of ADRs that in many instances were not backed by ordinary shares as required by the Depositary Agreements. This conduct violated Section 17(a)(3) of the Securities Act."

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