Bloomberg Tradebook Draws $5 Million SEC Fine Over Order Routing

Bloomberg Tradebook will pay $5 million to settle U.S. Securities and Exchange Commission allegations that some clients received misleading disclosures about how the broker handled their stock orders.

Bloomberg Tradebook allowed unaffiliated brokers to determine which market centers received certain orders, despite telling clients that such decisions were based on “Tradebook’s advanced technology,” the SEC said in a Wednesday order. “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 Tradebook’s costs,” Joseph G. Sansone, head of the SEC enforcement division’s market abuse ...