Credit Suisse Group AG: Trading in Dark Pools and Misleading Investors
Under the increasing regulation environment pushed by the SEC toward dark pools, Credit Suisse’s two dark pools, Crossfinder and Light Pool, were charged fines of $84.3 million in total. The management in Credit Suisse were facing the loss of dark pool market share and declining stock price.
- To highlight the conflict that arises as a company attempts to balance the need to earn profits with the responsibility of protecting client rights;
- To illustrate how a controversial mechanism can trigger government authorities to investigate, leading to large fines levied against a group of investment firms;
- To probe into the underlying reasons why a financial services company might be motivated to evade US federal regulations and mislead investors;
- To encourage discussion of client rights protection by financial services companies.