Pipeline Trading Fined $1M For Keeping Clients In Dark

Law360, New York (October 24, 2011, 4:16 PM EDT) -- The U.S. Securities and Exchange Commission on Monday fined Pipeline Trading Systems LLC $1 million for failing to tell customers of its so-called dark pool trading platform that most orders were completed by an affiliated trading operation.

Pipeline neither admitted nor denied the allegations in agreeing to pay the penalty. Founder and CEO Fred J. Federspiel and Chairman Alfred R. Berkeley III also agreed to pay $100,000 each.

“However orders are placed and executed, be it on an exchange floor or in an automated venue, whether...
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