Pipeline Financial Group, a US-based block trading platform operator, has announced the appointment of Jay Biancamano as its executive chairman, replacing Alfred R. Berkeley, who has retired from the firm.
Pipeline has also announced the resignation of its chief executive Fred Federspiel, who has left the company to pursue other opportunities.
Biancamano previously served at rival block crossing venue Liquidnet as global head of marketplace and corporate strategy and as a vice president and director at agency broker ITG, which also runs the POSIT dark pool.
“I’m excited to accept this opportunity to lead Pipeline forward,” said Biancamano. “This company has great products, very talented and dedicated people, and tremendous upside as a leading technology innovator.”
“Under Jay’s leadership, we will offer our customers innovative products that provide excellent execution, and work hard to earn their renewed trust,” added Reid Curley, chief operating officer of Pipeline Financial Group
Federspiel and Berkeley were both the subject of a recent investigation by US regulator the Securities and Exchange Commission (SEC).
The SEC found that Pipeline failed to disclose to clients that the vast majority of orders executed in its dark pool were filled by Milstream Strategy Group, an entity trading entirely owned and funded by Pipeline and managed by Federspiel between 2004 and 2006.
Pipeline was fined US$1 million, while CEO Fred Federspiel and chairman Alfred R. Berkeley III were fined US$100,000. In settling the matter, Pipeline, Federspiel and Berkeley did not admit to or deny the SEC’s findings.