Photo: AP.

(Bloomberg) — U.S. regulators imposed a record fine on UBS Group AG’s dark pool for failing to follow rules designed to ensure stock trades are executed fairly.

In ordering UBS to pay $14.4 million, including a $12 million fine that exceeds all prior penalties against an alternative trading system, the Securities and Exchange Commission flagged a series of violations from 2008 to 2012. It said UBS let customers submit orders at prices denominated in increments smaller than a penny, something SEC rules prohibit because it can be used to get a better place in line when buying or selling stock.

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