By Dean Seal


The electronic trading network Liquidnet has agreed to pay a $5 million regulatory fine to resolve allegations that it failed to protect confidential trading information and had faulty controls around market access.

The Securities and Exchange Commission said Friday that the broker-dealer, which is a U.S. subsidiary of the London financial services firm TP ICAP, violated the agency's market-access rule for a number of years by setting inappropriate credit thresholds, including having a default set at $1 billion.

Liquidnet also failed to adequately limit employee access to confidential subscriber trading information, the SEC claims.

Without admitting or denying the allegations, Liquidnet has agreed to pay a $5 million penalty to resolve the case.

The SEC said Liquidnet has already undertaken remedial efforts, including retaining an outside consultant to correct and improve its controls and procedures related to the market access rule and other requirements.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

01-10-25 1445ET