One of the leading independent execution brokers in the U.S. has announced that it is reshuffling the company’s top level management. The company revealed that it got involved in a huge controversy last week, potentially costing it up to $20 million.
ITG has been investigated by the U.S. Securities and Exchange Commission after it disclosed that one of its units has been using information unavailable to the broker’s clients to trade against them. The violations occurred within the company’s dark pool.
Mr. Lilien was already on the board of ITG before his appointment as CEO
The new CEO of the company Jarrett Lilien has solid broking experience after having previously served as a Chief Operating Officer at E-Trade. Mr. Lilien was already on the board of ITG and has previous experience in heading a brokerage. While working at E-Trade he was appointed as interim CEO before leaving the company in March 2008.
Mr. Lilien then proceeded to establish Bendigo Partners, a private investment firm dedicated to fund FinTech companies.
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After a strategic investment in a company developing an online gamified trading experience, Kapitall, Mr. Lilien became a member of its board and took the Chief Executive Officer (CEO) position at the firm between 2012 and 2014.
Credit Suisse: “We believe this step is in the best interest of ITG’s shareholders and clients.”
The chairman of the board of ITG, Maureen O’Hara, updated the public on the prospects for a settlement with the SEC, saying, “The board of directors, with the assistance of outside counsel, concluded its independent review of the SEC matter at the end of last week. We hope to expeditiously finalize the settlement and to work with our customers, shareholders and employees to restore confidence in our company and its capabilities.”
ITG has built its reputation across the industry for firmly following its clients’ interests when doing business with them. Shares of the company declined 4 percent in the aftermath of the announcement.
In another reshuffling, the General Counsel of ITG Mats Goebels left the company to be succeeded by Anglique DeSanto, ITG’s Associate General Counsel.
After the announcement a Credit Suisse analyst, Ashley Serrao, stated in a research note, “We believe this step is in the best interest of ITG’s shareholders and clients.”