The U.S. Securities and Exchange Commission issued an order revoking the registration of electronic trading system MarketXT Inc. today.

The order finds that, during a three-day period in March 2002, MarketXT reported thousands of wash trades and matched orders on the NASDAQ. It says the firm’s chief technology officer executed these wash trades and matched orders through an automated trading program he ran through accounts at a broker-dealer affiliated with MarketXT, Momentum Securities LLC.

MarketXT’s wash trades and matched orders did not reflect market supply and demand, but were generated solely for the purpose of permitting it to earn market-data rebates from NASDAQ, the SEC says. And, in a separate administrative proceeding, the Division of Enforcement charged the executive with securities fraud.

The order also found, beginning with its quarter ended Sept. 30, 2001, MarketXT entered an agreement with its parent company, which gave the appearance it maintained net capital far higher than the minimum requirement, as it had shifted all its liabilities to the parent.

The SEC order finds MarketXT willfully violated the Securities Exchange Act. And says it finds it necessary and appropriate in the public interest that MarketXT’s registration as a broker-dealer be revoked. MarketXT consented to the order without admitting or denying the findings.