A high-volume, high-frequency trading firm agreed Sept. 17 to pay $16 million for violating net capital rules—by far the highest fine ever paid to the Securities and Exchange Commission for such an infraction (In re Latour Trading LLC).
The fine “underscores the importance of compliance” with broker-dealer financial responsibility rules, Securities and Exchange Commission Enforcement Director Andrew Ceresney told reporters. The net capital rule is “critical” for customer protection, he added. The previous record for a net capital fine against a broker-dealer was $400,000 in 2004.
The case also was the first against an HFT firm, which have ...
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