Regulators Aren’t Done With ‘Dark Pool’ Investigations

The New York Times: Settlements by Barclays and Credit Suisse for misrepresenting their private stock trading sites to customers are unlikely to be the last as regulators continue to pursue abuses in electronic trading.

At the heart of the cases are so-called dark pools, a nefarious-sounding term for an activity that actually plays a big role in the way equities markets work. About 42 percent of the average daily trade volume is handled in the “dark,” according to the Tabb Group, a data and research firm. That means no information about the trades is known publicly before they are executed.

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