Investment Technology Group Inc. has discussed with the
Securities and Exchange Commission settling a probe of a trading
pilot at its AlterNet Securities Inc. unit in 2010 and 2011.
Brokerage and technology firm ITG said the investigation
concerns issues including customer disclosures and violations of
company procedures by a former employee related to information
breaches.
Under a potential settlement negotiated with the staff of the
SEC's enforcement division, ITG would pay $20.3 million. This would
include a civil penalty of $18 million, disgorgement of about $2.1
million in trading revenue and prejudgment interest of about
$250,000.
ITG expects to report a second-quarter loss of $10.2 million, or
30 cents a share, including costs related to the settlement.
Excluding these costs, ITG projects earnings of $11.4 million, or
32 cents a share.
Analysts polled by Thomson Reuters expect earnings of 39 cents a
share on revenue of $144 million.
ITG said April 30 that it would begin paying a dividend,
declaring a quarterly payout of seven cents a share. On June 2, the
company said it was launching a new hedge fund platform for the
Asia-Pacific region.
Write to Josh Beckerman at josh.beckerman@wsj.com
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