Increasing regulatory supervision and calls for transparency on one side and the threaten proliferation of “unregulated and opaque” Dark Pool and crossing networks by large institutions, have increased the calls by exchanges and exchange federations to review regulation and even ban them.
While the global debate is in full swing, China has clearly distance it self from any alternative trading venues in the country and prohibited the access to any “non-transparent” trading venues like dark pools for it’s QDII (Qualified Domestic Institutional Investors).
Below Article highlight the current trends and voices
SEC to extend probe into dark pools 09.10.2009
The Securities and Exchange Commission is to extend its regulatory probing of dark pools to include issues surrounding high frequency trading, direct market access and co-location.
What’s the Matter with Dark Pools, 02.10.2009
Dark pools are on the regulatory front burner. They’re seen as competing with the displayed markets, even as they’ve captured a segment of trading from the desks of broker-dealers’ upstairs.
The Securities and Exchange Commission is now bearing down on issues related to trading in dark pools and how much flow can execute in individual pools without triggering obligations to the rest of the marketplace. To provide some perspective on this broader discussion….
LSE and Turquoise an Item: Official, 01.10.2009
When we suggested here a few weeks back that the London Stock Exchange take a look at on-the-block Turquoise as a possible solution to its ‘TradElect problem’ it was slightly tongue in cheek. After all, we knew the LSE was in talks with MillenniumIT and it looked on paper as if an approach to Turquoise would amount to the exchange losing face to an upstart rival.
Dark Pools 2009: Not So Dark Anymore AITE Group, 30.09.2009
Only two things about dark pools are clear at this time: their overall market share continues to grow, and regulatory intervention appears inevitable.
London Stock Exchange to leave FESE 30.09.2009
But the move is a sign that a recent criticism by some of the world’s largest exchanges of the large banks’ off-exchange activities is not shared by some exchanges, which see their interests increasingly aligned with those same banks.
n a letter to Eddy Wymeersch, chairman of the Committee of European Securities Regulators, Ms Hardt said FESE believed the banks’ dark pools were “unregulated venues” operating with “full opacity”. The European equities market was “becoming a dealer market”.
Chi-X Global alleges ‘fear card’ move by ASX 30.09.2009
The head of Chi-X Global, the equities trading platform, on Wednesday accused the Australian Securities Exchange of playing the “fear card” after the exchange’s chairman spoke of the dangers of allowing multiple share trading venues.
New ideas fail to lift mood over dark pools 24.09.2009
Yet even as dark pools continue to generate eye-catching ideas, controversy is raging over their very existence. In Europe, the issue is pitting exchanges against big banks in a new battle over control of billions of dollars in share trading orders.
Exchanges call on G20 to tackle dark pools 23.09.2009
The World Federation of Exchanges (WFE) has urged G20 leaders to press for market reform to tackle the uneven playing field and eroded price discovery it claims has been caused by the emergence of alternative trading platforms such as dark pools.
In a letter sent to Mario Draghi, head of the financial stability board at the Bank for International Settlements ahead of the G20 summit in Pittsburgh, the WFE calls for more uniform rules between exchange-traded and “less-regulated” markets.
The WFE warns: “The heightened opacity of certain market operations in many countries inhibits price discovery and may lead to negative outcomes, such as increased volatility.”
“Taken together, the combination of the absence of a level playing field between execution venues and decreased market transparency is an unsettling development,” says the letter, signed by William Brodsky, chairman of the WFE.
The exchanges call on G20 leaders to agree on ways to avoid “regulatory arbitrage” to ensure market participants do not just go to countries with weak rules.
Source: Finetik, 01.10.2009
Filed under: Australia, Exchanges, FiNETIK Articles, Japan, News, Risk Management, Trading Technology, ASX Australian Stock Exchange, ATS Alternative Trading Systems, BAIKAL, BATS, CESR Committe of European Securities Regulators, Chi-X, Confidence Crisis, Dark Pools, Derivatives, Exchanges, FESE Federation of European Securities Exchanges, Financial Crisis, LSE Londo Stock Exchange, QDII, Regulation, Trading Hubs
