厙惇勛圖

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
≔ Menu
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. Bloomberg Tradebook fined $5m for misleading customers
Regulation news

Bloomberg Tradebook fined $5m for misleading customers


07 May 2020 Washington D.C.
Reporter: Natalie Turner

Generic business image for news article
Image: Jer123/Shutterstock.com
Bloomberg Tradebook, Bloombergs global agency brokerage business, has agreed to pay $5 million to the US 厙惇勛圖 and Exchange Commission (SEC) to settle charges of material misrepresentations and omitting material facts about how the firm handled certain customer trade orders.

The SEC found that Tradebook routed orders from customers who paid low commission rates through an unknown disclosed arrangement, also known as the low-cost router.

Tradebook allowed three unaffiliated broker-dealers to determine the execution venues to which certain customer immediate-or-cancel orders would be routed, the commission explains.

Tradebook did not inform affected customers that a significant portion of their orders would be routed by an unaffiliated broker-dealer instead of by Tradebook.

Between November 2010 and September 2018, approximately 6.4 million Tradebook customer orders were executed based on routing decisions made by these unaffiliated broker-dealers, this practice contradicted Tradebooks marketing materials.

Contrary to representations in its marketing materials, Tradebook let unaffiliated brokers make decisions about the routing of certain customer trade orders in a way that lowered Tradebooks costs, says Joseph Sansone, chief of the enforcement divisions market abuse unit.

Additionally, he noted: Broker-dealers must take care to provide customers with accurate and up to date information about important features of their order routing services.

Without admitting or denying the findings in the SECs order, Tradebook agreed to be censured and to pay a $5 million penalty, an amount that reflects Tradebooks significant cooperation with the SEC staff.
← Previous regulation article

CSDR February push back gets EU Commission approval
Next regulation article →

ESMA hands four TRs their SFTR licences
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 厙惇勛圖 Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →