GENEVA, July 29 (Xinhua) -- Switzerland's largest bank UBS reported a net profit of 792 million Swiss francs (around 873 million U. S. dollars) in the second quarter, up by 15 percent from last year's 690 million Swiss francs (761 million dollars), according to its latest financial report released on Tuesday.
Alongside its latest earning report, UBS revealed that it settled its cross-border tax matter in Germany in July with a payment of approximately 300 million euros (around 402 million U. S. dollars), referring to probes by the authorities in Bochum into whether the Swiss bank helped German clients evade taxes.
It noted that as a result of significant efforts by the bank, over 95 percent of its German clients have completed tax compliance at present, and it was in an effort to have them all compliant by the end of this year.
This was not the only news on the litigation front for UBS, which also stated in this latest report that it was responding to inquiries concerning the operation of its alternative trading system (ATS, also referred to as a dark pool) and its securities order routing and execution practices from various U.S. authorities, including the U.S. Securities and Exchange Commission (SEC), the New York Attorney General and Financial Industry Regulatory Authority (FINRA).
"These inquiries include an SEC investigation that began in early 2012 concerning features of UBS's ATS, including certain order types and disclosure practices that were discontinued two years ago," said the bank in its report.
UBS said that the lawsuits mainly alleged that the defendants' equities order handling practices favored high frequency trading firms at the expense of other market participants, which was accused by the U.S. as an violation of its federal securities laws.