High frequency trading firm hit with $5 million penalty by SEC

High-frequency trading firm Latour Trading LLC was fined $5 million in civil penalties by the Securities and Exchange Commission for violating trading rules designed to ensure safe and efficient financial markets.

The SEC also ordered Latour, a broker-dealer owned by prominent high-frequency trading parent Tower Research Capital, to repay more than $3 million in trading profits, rebates received by financial exchanges and prejudgment interest.

The case is the SEC’s second enforcement action against the firm. The financial market regulator last year accused LatourŒ of violating rules requiring it to maintain a minimum level of net capital. The regulation isŒ designed to prevent trading firms from taking excess risk. Latour agreed to pay a record $16 million settlement of that case.

Jeffrey Newman represents whistleblowers.