eBX Fined for Information Leakage
According to the charges from the SEC, eBX allowed a third-party vendor to utilize information on unexecuted trades on LeveL, its alternative trading system (ATS), in the vendor's own order routing service, thereby gaining a competitive advantage over other users. The charges allege that eBX did not have sufficient safeguards to protect this information.
Dark pools such as LeveL allow for non-displayed quotations, retaining confidentiality for participants and allowing for trading opportunities that may not exist on public, or 'lit', exchanges. In settling the charges, eBX will pay a $800,000 penalty and accept censure, along with preventing further violations.
"Dark pools are dark for a reason; buyers and sellers expect confidentiality of their trading information," says Robert Khuzami, director of the division of enforcement at the SEC. "Many eBX subscribers didn't get the benefit of that bargain, they were unaware that another order routing system was given exclusive access to trading information that it used for its own benefit."
More on Trading Tech
Doing a deal? Prioritize info security early
Engaging information security teams early in licensing deals can deliver better results and catch potential issues. Neglecting them can cause delays and disruption, writes Devexperts’ Heetesh Rawal in this op-ed.
Google gifts Linux, capital raised for Canton, one less CTP bid, and more
The Waters Cooler: Banks team up for open-source AI controls, S&P injects GenAI into Capital IQ, and Goldman Sachs employees get their own AI assistant in this week’s news roundup.
Waters Wavelength Ep. 323: MarketAxess’s Chowdhury and Burke (plus some Cusip updates)
This week, Riad Chowdhury, head of Asia-Pacific, and Dan Burke, global head of emerging markets at MarketAxess, join to discuss block trading in fixed income. Plus Reb discusses her recent article about Cusip and updates on the class action lawsuit moving through the courts.
As datacenter cooling issues rise, FPGAs could help
IMD Wrap: As temperatures are spiking, so too is demand for capacity related to AI applications. Max says FPGAs could help to ease the burden being forced on datacenters.
WatersTechnology latest edition
Check out our latest edition, plus more than 13 years of our best content.
Deutsche Bank casts a cautious eye towards agentic AI
“An AI worker is something that is really buildable,” says innovation and AI head
LLMs are making alternative datasets ‘fuzzy’
Waters Wrap: While large language models and generative/agentic AI offer an endless amount of opportunity, they are also exposing unforeseen risks and challenges.
Trading venues seen as easiest targets for Esma supervision
Platforms do not pose systemic risks for member states and are already subject to consistent rules.
