Credit Suisse To Pay SEC $10 Mln To Settle Retail Customer Trading Claims

(RTTNews) - Credit Suisse has agreed to pay $10 million to the Securities and Exchange Commission and the Office of the New York Attorney General to settle charges related to how the company handled its retail customer order.

The settlements require Credit Suisse to pay $5 million to the SEC and $5 million to the NYAG for a total of $10 million.

SEC claims Credit Suisse created Retail Execution Services desk to execute orders for other broker-dealers that handle order flow on behalf of retail investors. The SEC's order finds that although RES promoted its access to dark pool liquidity to customers, the firm executed an exceedingly minimal number of held orders - orders that must be executed immediately at the current market price - in dark pools from September 2011 to December 2012.

"Market makers that handle retail orders must be transparent with their customers about how orders will be executed and how the market maker will profit from their customers' trades," said Marc Berger, Director of the SEC's New York Regional Office. "The settlement holds Credit Suisse accountable for failing to accurately disclose important information about the nature and quality of its execution of trades for retail investors."