Posted on 05/21/2009 8:31:10 PM PDT by TigerLikesRooster
NYSE Executives: More Regulation Of Dark Pools Needed
By Geoffrey Rogow, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- As the proliferation of dark pools continues to eat into exchanges' share of trading volume, exchanges may look to Washington for help.
Executives from NYSE Euronext (NYX) said Tuesday dark pools, electronic- trading venues where money managers trade large blocks of shares anonymously, are essentially "free riding" on the stock prices they provide. In addition, as these dark pools continue to grow in volume, they are making stock prices on exchanges less legitimate, according to NYSE executives.
Notably, exchanges are regulated under Regulation NMS, which enforces strict licenses for trading. Dark pools, however, are regulated under Reg. ATS, which has much less stringent requirements. For example, dark pools don't have to report volumes monthly, don't have to print bids and offers the way exchanges do and don't have to identify who's trading what stocks.
"Here, take our exchange license back if we have all these requirements we don't need," Larry Leibowitz, group executive vice president and head of U.S. execution & global technology for NYSE, told reporters at a luncheon hosted by the exchange. Leibowitz noted NYSE officials are in consistent dialogue with regulators in Washington on their concerns.
(Excerpt) Read more at nasdaq.com ...
Ping!
It is noticeable if you watch the trades real time. There are very few large trades going down..so they must be somewhere. I do some pretty hefty trades and the mutual funds must be doing bigger ones..I never see them.
In this computer age..all trades and all exchanges should be in the ticker. Sensible regulation.
I see so much stuff printing third now that has no relation to any deincrementation of a posted third-printing ecn quote, not to mention the sub-decimal fills/double prints, that it can be quite frustrating at times.
Watch a million shares trade at the offer on C as third market, only say 250k showing on the third-printing ecns/exchanges, yet they barely even de-increment or refresh (not reserve orders, just not being lifted, heck I can be at front of line and slowly partially on one or more ecn’s and still it is like pulling teeth unless they take all bids/offers out, yet third printing 100x my orders in the interim). What am I missing here...
Is that English? :)
They are all in the ticker, they’re all on the consolidated tape.
People trying to move big blocks of shares got tired of being scalped and having their transactions front-runned by market-makers.
Madoff trading on his cell-phone from jail?
Exchanges have been negatively impacted by the proliferation of these dark pools. In April, for example, 22% of average daily stock volume in the U.S. was either in a dark pool or was executed off exchange by brokers in the "dark," according to Tabb Group.
Well, well.
Can anyone say George Soros and friends?
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