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SEC fines Credit Suisse USD 10 million over customer orders

Tuesday 2 October 2018 10:16 CET | News

The US Securities and Exchange Commission has fined Credit Suisse Group USD 10 million over its handling of retail customer orders, including through its dark pool.

Dark pools are private trading venues that let people trade quietly, often in large orders with minimal price movement. Both SEC and New York Attorney General Barbara Underwood said the Swiss bank’s Retail Execution Services business, which closed in 2015, treated orders for which execution quality was not required to be publicly reported less favourably than orders subject to such reporting. 

Furthermore, they also said Credit Suisse promised ordinary customers access to broad liquidity in dark pools, including its own, but processed only a “minimal” number of “held orders,” which must be executed immediately at market prices, in that manner.

Credit Suisse’s settlement covers alleged improper treatment of customer orders from mid-2011 through March 2015. The bank is paying USD 5 million each to the SEC and Underwood’s office, without admitting or denying wrongdoing.

Credit Suisse spokeswoman Nicole Sharp said the bank was pleased to settle, according to Reuters.


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Keywords: US Securities and Exchange Commission, fine, penalty, Credit Suisse Group, dark pool, US, Switzerland
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Countries: World