Joseph Sansone, chief of the SEC’s Market Abuse Unit, commented on the importance of proper controls for ATS operators, noting that these firms play a significant role in providing liquidity in public markets. He emphasized that it is crucial for ATS operators to have systems in place to mitigate risks related to market access and the potential exposure of confidential subscriber trading information in order to protect investors.
In response to the settlement, Liquidnet issued a statement saying that the firm has implemented a targeted program of specific measures to address the issues raised in the SEC’s order and to prevent any future recurrence of similar problems. The company expressed appreciation for the collaboration with regulatory authorities and reaffirmed its commitment to upholding the highest standards of data protection and operational excellence.
The SEC’s investigation into Liquidnet was represented by Rachael Clarke, Mandy Sturmfelz, and Lindsay S. Moilanen. Legal counsel for Liquidnet was not immediately identified.
