German lender Deutsche Bank AG will pay US$37m to the State of New York and the US Securities and Exchange Commission (SEC) to end government investigations into how it routed trades to “dark pool” private trading venues, including its own, authorities said Friday.
Deutsche Bank in its settlement admitted that between January 2012 and February 2014, it misled traders about how it ranked trading venues, including its SuperX dark pool, and how it determined which dark pool it would send an order to, according to agreements with the SEC and the New York Attorney General’s office.
The bank said in a written statement it believed it had fixed the problems and was pleased to resolve the matter.
“Misleading and self-serving statements that defraud investors will not be tolerated,” New York attorney general Eric Schneiderman said.
Dark pools can benefit banks by keeping more orders in-house, reducing fees to stock exchanges. Customers generally seek a balance of minimizing fees while executing trades swiftly without moving prices in the market.
According to The Wall Street Journal, the US Financial Industry Regulatory Authority (FINRA) also issued a related US$3.25m penalty on Friday.
In addition, European stocks have dropped from a 2016 high. Deutsche Bank was among the worst performers on Monday, falling more than 4.4%, according to CNBC.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.