SEC Hopes To Impose Huge, 95% Cut On Dark Pool Trading

Anonymous traders using so-called Dark Pools won’t be happy to hear what the SEC is proposing regarding trading limits:

Bloomberg: The U.S. Securities and Exchange Commission will propose toughening its limits on the amount of anonymous trading carried out on stock platforms called dark pools, according to two people familiar with the deliberations.

The commission will propose lowering the amount of daily volume in a company’s shares that can be executed in private on any of the networks to 0.25 per cent from 5 per cent at a hearing tomorrow in Washington, said the people, who declined to be identified because the discussions weren’t public. John Nester, an SEC spokesman, declined to comment

Dark Pools have come under fire along with Flash and High-Frequency Trading, but it’s unclear why — inf act, Dark Pools are the antidote to HFT and Flash, since opportunities to see orders and frontrun are all but impossible in these scenarios.

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