Bloomberg News reports that BNP Internal Exchange, the bank’s dark pool, failed to give priority to higher priced orders, even though it claimed to do so in materials provided to clients, the Securities and Futures Commission said in a statement on Monday.
The brokerage treated all orders as having equal priority between November 2009 and April 2011, when it suspended operations, the SFC said.
'No one should dive into dark water without knowing what is hidden', Mark Steward, the SFC’s executive director of enforcement, said in the statement. 'Operators must have clear rules and procedures in place for operating dark pools'.
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