SEC sues Virtu Financial for failing to safeguard customer information

Virtu Financial

12/09/2023 21:42

NEW YORK, Sept 12 (Reuters) - The U.S. Securities and
Exchange Commission (SEC) on Tuesday sued Virtu Financial
 VIRT.O , accusing the broker-dealer of failing to properly
safeguard customers' confidential information.
    The SEC in a complaint filed in Manhattan federal court said
Virtu repeatedly and falsely told customers it used "information
barriers" and "systemic separation between business groups" to
protect their material non-public information.
    The SEC said that in reality, virtually all employees at the
Virtu Americas broker-dealer unit, which handles about 25% of
market orders placed by U.S. retail investors, could access
information about customers and their trades.

 (Reporting by Jonathan Stempel in New York; Editing by Mark
Porter)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))