Financial Times FT.com

Action urged on ‘dark pools’ trading

By Tom Braithwaite in Washington

Published: October 28 2009 19:40 | Last updated: October 28 2009 23:09

The US securities regulator should be empowered by lawmakers to shed more light on “dark pools” – trading in shares outside of traditional exchanges – and high-frequency trading, lawmakers say.

Dark pools give investors a chance to trade large blocs of shares without alerting the broader market to what they are doing. The off-exchange pools of liquidity have proliferated in recent years to account for about a 7 per cent share of volume in US equities trading.

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