Yoomi Lee | Bloomberg LawSEC Press Release No. PR-2011-208 (Oct. 13, 2011); SEC Release No. 34-65556 (Oct. 13, 2011); Administrative Proceeding File No. 3-14586 (Oct. 13, 2011) The Securities and Exchange Commission (SEC) entered into a settlement agreement with EDGA Exchange, Inc. (EDGA), EDGX Exchange, Inc. (EDGX, and together, Exchanges), and their affiliated routing broker-dealer Direct Edge ECN LLC doing business as DE Route (collectively, with Exchanges, Respondents). The SEC charged Respondents with violations of the federal securities laws as a result of their weak systems, processes, and controls on two separate occasions. Without admitting or denying the allegations, Respondents agreed to be censured and to cease and desist from committing or causing further violations. Moreover, Respondents agreed to implement remedial measures, including (1) enhancing their system development and maintenance policies and procedures, (2) employing an enterprise risk management framework and information security program, and (3) hiring a corporate training director to train employees regarding the Exchanges' policies and procedures.
November 8, 2010 Systems Incident
April 13, 2011 Systems Incident
Federal Securities Law Violations
To view additional stories from Bloomberg Law® request a demo now