The EU's new Markets in Financial Instruments Directive, known as MiFID II, promises to reform many aspects of the securities industry in Europe, from high frequency trading to derivatives and commodities trading. But one portion of the legislation that might be getting the most mixed reviews is MiFID II's restrictions on dark pools.
For many buy-side players, dark pools were an important piece of the trading tapestry, a respite in some ways to the perceived predatory practices of high frequency traders. To be sure, even as the...
The market structure debate has been vexing for many, none more so than the traditional exchanges, notably the NYSE and Nasdaq. They of course have seen their market share wither in the face of broker-owned dark pools, the very brokers that are regulated by the exchange SROs. A frustrating status quo indeed.
People seem resigned to some sort of reporting rule regarding trade executions in dark venues. But the devils when it comes to market structure regulations are always in the details. And it wouldn't be surprising if the reporting requirement ended up being hugely controversial, one that may not become law as soon as some think.
A new regulation requiring dark pools to disclose their trading volumes is rumored to be about to be released, and it seems almost welcome. The two traders quoted in the article basically say there will be some questions about the specifics of disclosures (frequency, etc.) but the rule "will pass."
The Financial Industry Regulatory Authority is looking to shed light on dark pools and its first draft of a proposed new rule could be released in October or November. The rule would require dark pools to report their trading volume and would establish some uniformity in how the trading volume is reported.
n an era of weak volume, the stakes have risen in the great battle pitting exchanges companies against broker dealers, that is, traditional exchanges against broker-owned dark pools and ATSs. The latest manifestation of the acrimony is the move by broker dealers to force the SEC to make some structural change regarding the SROs run by the exchanges. The broker dealers would like nothing more than to see the exchange's SRO status revoked.
The rise of the New York Block Exchange stands at the thriving intersection of several trends: the decline of block trades, the decline of floor-based trading at the Big Board, the rise of algorithms, the rise of dark pools, and so on.
The heads of the three major U.S. stock exchanges are taking off the gloves.
It was a bad day for transparency in the equities markets when Credit Suisse decided to no longer make trading data for its CrossFinder dark pool available to information vendors. Without data from such a massive player-- the dark pool is by far the largest-- the market share data from Tabb Group and Rosenblatt Securities loses a lot.