Share

Dark pools lose big as volume moves to exchanges

New York - Add dark pools to the list of losers as US stocks plunge.

Less than 30% of volume in the US stock market on Monday was handled in Wall Street’s more secretive corners: off-exchange platforms such as dark pools and banks’ internal networks. If that level persists through the end of the day, it will be their lowest market share since August 1, 2012.

Overall trading surged on Monday as global markets convulsed, pushing total US volume past 5.7 billion shares just after 11:45 New York time. Over the past year, trading has averaged 6.6 billion shares for an entire day.

For years, less-regulated platforms have lured business away from more transparent exchanges. That trend reversed on Monday with NYSE Arca, Nasdaq Stock Market and Bats Global Markets winning abnormally high volumes. Off-exchange volume usually exceeds 35% and sometimes tops 40%.

Regulators have targeted dark pools in recent years. Investment Technology Group agreed this month to pay the largest-ever fine for rule violations by a dark pool. UBS Group was also fined by the Securities and Exchange Commission this year, and New York’s attorney general has gone after Barclays.

Bloomberg LP, the parent of this news organisation, runs an off-exchange trading system called Tradebook and owns a stake in Bids Trading LP, which operates a dark pool.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.3%
Rand - Pound
24.11
-0.0%
Rand - Euro
20.61
-0.1%
Rand - Aus dollar
12.38
+0.4%
Rand - Yen
0.13
+0.6%
Platinum
901.60
-0.1%
Palladium
998.41
-0.8%
Gold
2,154.06
-0.3%
Silver
24.96
-0.3%
Brent Crude
86.89
+1.8%
Top 40
65,526
-1.1%
All Share
71,751
-0.9%
Resource 10
52,809
-1.0%
Industrial 25
99,160
-1.3%
Financial 15
16,511
-0.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders