Direct Edge Hit With Sanctions Over Botched Trades

Law360, New York (October 14, 2011, 3:44 PM EDT) -- The U.S. Securities and Exchange Commission sanctioned three affiliates of electronic stock exchange operator Direct Edge Holdings LLC on Thursday over poor internal controls that allegedly caused about $3 million in trading losses.

Electronic stock exchanges EDGA Exchange Inc. and EDGX Exchange Inc. and broker-dealer Direct Edge ECN LLC agreed to settle the charges without admitting or denying the allegations. Under the agreement, they will be censured by the commission and will implement changes to prevent future failures, according to the SEC.

“Direct Edge was required...
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