Dark Pools, Meet "Twilight Pools"

In the book Dark Pools: The Rise of the Machine Traders and Rigging of the US Stock Market, author Scott Patterson, who covers government regulation for the Wall Street Journal, exposes the dangerous side of markets that operate under “dimly lit” conditions.  The issue of markets facilitating large block transactions in secret has provided significant privacy benefits to participants, but are also a cause of consternation among regulators and market participants.  The dark pool stands in stark contrast to the regulated exchange, where fees, liquidity and market transactions are known to all. A new type of trading venue is emerging…