A stock-trading "dark pool" backed by some of Wall Street's biggest banks agreed to settle a regulator's allegations that it improperly shared confidential client-trading information with a unit of Citigroup Inc., one of its investors, the Wall Street Journal reported today. The Securities and Exchange Commission alleged in its order that Boston-based broker-dealer eBX LLC allowed the third-party operator of its trading platform, called LeveL ATS, to use details on client orders, including the stocks involved and whether they were buy or sell orders, to its own advantage. That operator is Lava Trading, an electronic-trading unit of Citigroup, according to eBX. eBX agreed to pay $800,000 to settle the SEC's allegations. It did so without admitting or denying wrongdoing.
