Liquidnet Says Dark Pool Disclosures Drew SEC Reproach

Law360, New York (June 22, 2012, 3:07 PM EDT) -- Liquidnet Holdings Inc., the operator of a so-called dark pool stock trading network, revealed Friday that the U.S. Securities and Exchange Commission had faulted it for disclosing information about the trading habits of its members.

The SEC recently inspected Liquidnet and determined it had improperly provided “descriptive characteristics” about member clients to corporations that use the trading platform to sell and buy back their shares, company spokeswoman Melissa Kanter said. She said the inspection was not related to Liquidnet’s core trading business.

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