Regulators shine light on shark-infested "dark pools"
Published on Jun 27, 2014 11:39 PM
LONDON (REUTERS) - Regulators are moving to shine a light on "dark pools", opaque
and quasi-anonymous trading venues. New York's attorney general has filed a lawsuit against British bank Barclays relating to its dark pool, accusing it of giving an unfair edge to high-frequency traders while claiming to be protecting other clients from them.
What is a dark pool?
Dark pools allow big blocks of shares to be traded anonymously without publicly informing the market until the trade is completed. This minimises the risk of the price moving to the disadvantage of an investor should the market get wind of the trade before it is executed.
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