Credit Suisse confirms closure of Light Pool trading venue

Credit Suisse shuts down Light Pool, but keeps dark trading venue open.

Credit Suisse has confirmed the closure of its US stock trading platform due to restricting operating costs.

A spokesperson explained the alternative trading system (ATS), Light Pool, was closed almost a month ago on 18 November, although its Crossfinder dark trading venue will remain open.

Launched in 2011, Light Pool was established as an electronic network that displays orders to compete with other exchanges and venues in the lit market.

The Light Pool stock trading venue hit headlines in January this year after the Securities and Exchange Commission (SEC) fined Credit Suisse over $80 million.

Both the Light Pool and Crossfinder alternative trading systems failed to operate as advertised and failed to comply with numerous regulatory requirements over a multi-year period, the SEC said.

The settlements are among the biggest relating to dark pools, which are often criticised for a lack of transparency about who is trading in them.

Dark pools cut costs for banks, as they do not have to pay fees to stock exchanges when trades are executed within their dark pools.

Andrew Ceresney, former director of the SEC’s enforcement division, said at the time: “These largest-ever penalties imposed in SEC cases involving two of the largest ATSs show that firms pay a steep price when they mislead subscribers.”