http://www.bloomberg.com/news/2014-09-17/dark-pools-confront-more-transparent-future-amid-threats.html
Whether they like it or not, banks are opening up their dark pools, the private venues that host 17 percent of trading in the $24 trillion U.S. stock market.
Off-exchange markets accounting for more than 40 percent of dark-pool volume have publicly disclosed rules of operation that were previously hidden. They’re taking the step amid New York Attorney General Eric Schneiderman’s accusation that Barclays Plc (BARC) misled clients about the presence of high-frequency traders in its private stock market.
Banks and brokers that own the markets are finding it harder to maintain the cloak of secrecy that used to define the venues. Schneiderman is scrutinizing the biggest dark pools, according to a person familiar with the matter, while the U.S. Securities and Exchange Commission is probing the industry. The Financial Industry Regulatory Authority’s board meets this week to decide whether to make private venues give it more data.
Reacting to the controversy, customers are demanding more information about how orders are processed, according to John Cosenza, co-head of electronic trading at Cowen & Co., a New York-based brokerage.
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