Bloomberg By Hazel Bradford · September 14, 2018 3:21 pm Citigroup agreed to pay nearly $13 million to settle charges by the Securities and Exchange Commission that its Citigroup Global Markets subsidiary misled institutional users of its dark pool. The SEC order alleges that the Citigroup subsidiary and premium-priced dark pool Citi Match, operated by Citi Order Routing and Execution, misled users by assuring them that high-frequency traders were not allowed to trade in the dark pool, yet two of the most active users qualified as high-frequency traders and executed more than $9 billion of orders through the pool. "This representation was material because many market participants, particularly institutional firms, sought to avoid trading against HFT during the relevant period. CGMI charged users a relatively high commission rate for Citi Match executions — generally targeted to be a penny per share for executions of orders placed using a direct connection into Citi Match — based in part on the representation," the order said. Citi Match was marketed exclusively to institutional customers, including mutual fund and retirement fund advisers. The period covered in the order is from at least December 2011 through June 2014. The SEC defines a dark pool as a trading venue or marketplace that accepts, matches and executes orders without providing its best-priced orders for inclusion in the consolidated quotation data. http://www.pionline.com/article/201...=792&itq=ac388ac8-b344-4202-be81-4c22000e18cb