Free Republic

Dark Pools: The Menace Of Rising Opacity In Financial Markets May 22, 2010 - 8:56 am VoxEU.org is a policy portal set up by the Centre for Economic Policy Research which aims to promote research-based policy analysis and commentary by leading scholars. Over-the-counter markets for derivatives have been a subject of blame for the global crisis. This column by Venkatachalam Shunmugam, Chief Economist, Multi Commodity Exchange of India, and first published on VoxE.org argues that the rising opacity and barriers to entry in these markets have been sorely overlooked leading to dark pools, flash trading, and front-running. These unfair practices...

Columnists: Locust: Crossing networks – Dark traders Locust shines a light on the dark pools of liquidity seeping into the financial world A lively public stock exchange is often considered the necessary centrepiece of any successful economy. Yet at the O’Reilly Money:Tech conference in New York in February, which looked at how the internet is affecting the financial industry, one session discussed two troubling developments in the world of share trading: dark pools and crossing networks. Dark pool is the umbrella term for any “non-displayed liquidity”, or trades that are hidden from public view, many of which are block trades...