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Credit Suisse Group AG: Trading in Dark Pools and Misleading Investors
Sun, J., Xia, Q., O’Rourke, J. S. (editor)
February 2, 2018
SKU:
BUS-004066 Region:
North America
Topic:
Strategy & General Management
Length:
12 pages
Keywords:
regulation, fines, management, Market Share, stock price
Copyrighted by:
Notre Dame
Student Price:
$4.00 (€3.71)
Average rating:
0
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.
Learning Outcomes:
- 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.