WASHINGTON (CN) - Two trading exchanges formerly owned by Direct Edge Holdings and acquired by BATS Global Markets will pay $14 million to settle SEC charges, the agency said Monday.
The settlement with EDGA Exchange and EDGX Exchange is the largest ever against a national securities exchange, and the first one focusing on stock exchange order types, the SEC said in a statement.
"These exchanges did not properly describe in their rules how their order types were functioning," SEC enforcement director Andrew Ceresney said in the statement.
"They also gave information about order types only to some members, including certain high-frequency trading firms that provided input about how the orders would operate."
The companies described just one "price sliding" type of order, but actually had three of them, the SEC said.
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