Dark Pools & Liquidity
Citigroup is closing its LavaFlow alternative trading venue because the firm decided the venue hasn't achieved enough scale to merit continued investment. The move comes just months after LavaFlow was forced to pay $5 million in regulatory fines and as alternative trading systems and dark pools in general are coming under increased scrutiny.
As CEO of a trading venue that has long used electronic auctions as its signature trading method, PDQ chief executive Keith Ross might seem like an unlikely person to challenge a proposal to replace central limit order book trading with frequent batch auctions. But for Ross, not all electronic auctions are created equal.
ICAP's EBS foreign exchange trading business will launch an anonymous bilateral liquidity pool in early 2015. The company will segment EBS Select, the new pool, so that prices will be delivered in an undisclosed environment and a segregated liquidity pool.
Turquoise, the European dark pool owned by the London Stock Exchange, has launched a service for trading large block orders, with liquidity provided by seven brokers out of the gate.
Wells Fargo shut its alternative trading system or dark pool on Friday due to weak demand in a crowded market that includes dozens of alternative trading venues.
Independent execution and research broker ITG is launching a dark pool algorithm that is says will help buy side investors increase fill rates in non-displayed venues while filtering out "toxic" liquidity.
Wednesday's high volatility was apparently more excitement than some trading venues are used to. Bloomberg reported that three large dark pools--those run by Goldman Sachs, Credit Suisse, and...
Barclays was back in court this week arguing for the dark pool suit against it to be thrown out based on legal interpretations of whether the statutes under which the suit was filed are applicable.
Asset management giant BlackRock outlined bold moves for fixing a "broken" corporate bond market in a Viewpoint paper posted on its website Monday afternoon. The firm also warned that the bond market's inefficiencies are being masked by low interest rates, low volatility and the effects of quantitative easing, and its underlying problems will likely come to a head when more normal market conditions return.
Less than two months after N.Y. Attorney General Eric Schneiderman levied charges against Barclays that it deliberately misled investors in its dark pool, regulators are reportedly looking into operations at five more investment banks. No specific allegations have been revealed, but several firms have confirmed that either Schneiderman's office or another agency is investigating their practices.