UBS has agreed to pay $14.5 million to settle accusations by the Securities and Exchange Commission that a subsidiary violated federal securities laws in its operation of a private stock trading system known as a dark pool, the New York Times DealBook blog reported today. The UBS subsidiary ran afoul of regulations by allowing traders to buy and sell stocks priced at increments smaller than a penny, and it further erred by failing to adequately disclose this system and another trading feature to all investors in its market, the SEC said yesterday. The settlement includes a $12 million penalty that the SEC said was the largest it had ever levied against an alternative trading system.
