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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
Student Price: 
$4.00 (€3.38)
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: 
  1. To highlight the conflict that arises as a company attempts to balance the need to earn profits with the responsibility of protecting client rights;
  2. To illustrate how a controversial mechanism can trigger government authorities to investigate, leading to large fines levied against a group of investment firms;
  3. To probe into the underlying reasons why a financial services company might be motivated to evade US federal regulations and mislead investors;
  4. To encourage discussion of client rights protection by financial services companies.