The Securities and Exchange Commission (SEC) is planning on curtailing trading on non-transparent “dark pools” by encouraging the use of more regulated and transparent exchanges, according to a report in the Wall Street Journal. The move aimed at dark pools could “deliver a blow to bank trading operations,” the report noted, as it pointed to another SEC’s goal to boost trading in stocks of smaller companies by increasing the “tick” size under which stocks are bought and sold on the exchange. Regulatory crackdown on questionable activities considered only a matter of time Observers in the derivatives industry had been viewing…
SEC Eyes Dark Pool Crackdown
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.