NYSE Euronext (NYX) and Nasdaq OMX Group Inc., their share of American equity markets squeezed by venues that sprang up in the mid-2000s, told legislators today that too much trading occurs in dark pools, hurting investors.
Exchanges and private, broker-run dark pools are subject to separate regulations that impair the price-setting process and make it harder for public venues to compete, executives from the largest stock market operators said. Trading that occurs away from exchanges, excluding the biggest venues known as electronic communication networks, or ECNs, has doubled since early 2008, according to data compiled by Rosenblatt Securities Inc.
Members of a U.S. Senate subcommittee heard both sides today in the debate over off-exchange venues, which have risen to prominence since the 1990s when new rules enabled automated systems to compete with the main markets. While proponents say dark pools spur competition and help investors trade more easily and without affecting prices, exchanges say regulators have let the venues grow too freely without rules for fair access
http://www.bloomberg.com/news/2012-12-18/dark-pool-expansion-hurts-investors-nyse-nasdaq-to-tell-senate.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 