Liquidnet Settles SEC Case for Improper Use of Customer Data
In 2009, Liquidnet launched an Equity Capital Markets (ECM) desk to offer block execution services to corporations and private equity firms. This was in addition to its core crossing network business. An SEC investigation found that Liquidnet provided ECM sales employees with access to the confidential trading information of dark pool subscribers from 2009 to late 2011, who used it to market ECM's services. For example, ECM employees would provide issuers with descriptions of ATS subscribers who
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