BATS Settles Direct Edge Case with SEC
Exchange operator pays $14m to regulator over legacy issues.
The penalty is the largest ever levied by the US equity market watchdog against an exchange operator, and relate to issues at Direct Edge prior to its acquisiton by BATS.
During its investigation, the SEC found that the EDGA and EDGX venues purported to offer a single price-sliding process for handling orders, when in fact three variations existed ─ hide not slide, price adjust, and single re-price.
One of the more controversial in this case is hide not slide, a mechanism whereby orders that
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