While it’s no secret dark pools exist, the business that takes place in them is equivalent to that done within a secret society. During a time when the SEC is calling for transparency, it’s ironic that a dark pool operator would be fined for revealing too much. Liquidnet was fined $2 million for allowing a separate business unit to access confidential information about customer’s trades. The information leaked to the other unit would have helped them grow on another platform. The SEC is calling for greater details on dark pool transactions to be released to the public, not to other business units within the dark pool operator.
This tomb that they gather in to conduct their secret business is available to members only. In order for securities to be exchanged here, a buyer and seller must both be present at the same time. Otherwise, it is nothing more than a missed opportunity.
Dark pools are an alternative trading system within the market, but are not affiliated with public trades. They were originally intended to allow large exchanges for the best price. Buying or selling mass amounts of securities would cause the price to fluctuate on a public exchange, but doesn’t have the same effect during the processing of a trade when done in private. Brokerages and large banks often run these dark pools. In more recent times exchanges are being allowed in amounts that are considered average in the public market. With a great deal of the trading taking place on a private venue, tougher regulation may be necessary to avoid a crash.
The SEC has been looking to make the dark pool venue more transparent. Currently the general public doesn’t notice bones that disappear through a dark pool until they’re gone. Greater scrutiny of these secret societies is one way to protect bones from those who plan to steal them.
This tomb that they gather in to conduct their secret business is available to members only. In order for securities to be exchanged here, a buyer and seller must both be present at the same time. Otherwise, it is nothing more than a missed opportunity.
Dark pools are an alternative trading system within the market, but are not affiliated with public trades. They were originally intended to allow large exchanges for the best price. Buying or selling mass amounts of securities would cause the price to fluctuate on a public exchange, but doesn’t have the same effect during the processing of a trade when done in private. Brokerages and large banks often run these dark pools. In more recent times exchanges are being allowed in amounts that are considered average in the public market. With a great deal of the trading taking place on a private venue, tougher regulation may be necessary to avoid a crash.
The SEC has been looking to make the dark pool venue more transparent. Currently the general public doesn’t notice bones that disappear through a dark pool until they’re gone. Greater scrutiny of these secret societies is one way to protect bones from those who plan to steal them.
