Louis Capital Markets, LP, a registered broker-dealer, settled charges brought by the Securities and Exchange Commission that, from at least October 2012, it charged its institutional customers undisclosed mark-ups and mark-downs on some of their equities purchases and sales, in addition to disclosed commissions. According to the SEC, during the relevant time, LCM typically filled its customers stock orders on an agency basis by executing their trades in the open market. For this it charged commissions of between one and three cents/share. However, on other occasions, the SEC claimed that after executing some orders for customers at one price, the firm confirmed a less favorable price to the customers, locking in a profit for themselves. The firm did not disclose this practice to its customers. According to the SEC, LCM engaged in this practice “opportunistically … [during] times when customers were unlikely to detect them, for example, during periods of market volatility.” To resolve this matter, LCM agreed to pay disgorgement of US $2.5 million. The SEC accepted this amount considering “the particular circumstances of this case, including the financial condition of the Respondent.” The SEC, in its discretion, will determine to distribute funds collected from LCM or transfer them to the US Treasury.