SEC Set To Enact "Broad Set" Of HFT Reforms [REPORT]

FOX Business Network’s (FBN) Senior Correspondent Charlie Gasparino reports, “the Securities and Exchange Commission (SEC) will “likely enact a broader set of market reforms to deal with a myriad market-structure issues, including the high-speed trading, sometime next year.” Gasparino said, the SEC “is conducting a holistic review of problems in the securities market, including, increasing use of private trading platforms known as dark pools.” Gasparino also reports Goldman Sachs Group Inc (NYSE:GS), which operates one of the largest dark pools is, “weighing a move that wouldn’t allow those platforms to be used by outside investors,” but they, “wouldn’t completely shutter its dark pool.”

Story here.

On high-frequency trading laws:

“The FOX Business Network learned the Securities and Exchange Commission (SEC) has all but ruled out enacting a separate set of laws to combat improprieties involving high-frequency trading. Instead, Wall Street’s top cop will likely enact a broader set of market reforms to deal with a myriad market-structure issues, including the high-speed trading, sometime next year.”

On the SEC taking a holistic review:

“One person with direct knowledge of the SEC’s thinking says the regulator is conducting a holistic review of problems in the securities market, including the increasing use of private trading platforms known as dark pools, which have come under fire for failing to protect investors from predatory traders.  The commission’s rule-making on dark pools could result in several shutting down, according to people with knowledge of the SEC’s thinking. Still major dark pool operators are weighing whether they will remain in the business”

On Goldman Sach’s dark pools operation:

“The FOX Business Network has learned Goldman Sachs (GS), which operates one of the market’s largest dark pools, is weighing a move that wouldn’t allow those platforms to be used by outside investors, including high-frequency traders, people close to the firm say. Goldman wouldn’t completely shutter its dark pool, but it would “re-purpose it” for internal trades exclusively, these people say.”