CMCRC COMMENTS IN “NEW RULES WON’T DRY UP DARK POOLS: INDUSTRY”
In an article in the AFR, Mike Aitken comments on the new rules around dark trading introduced by ASIC, and explains why the changes are thought sensible and reasonable in light of the experience of the US and Canada. “It means that we won’t have the regulatory arbitrage that we had in the United States where dark pools were allowed to grow at the expense of the lit markets which were subject to a great deal more regulation… It has already been shown in Canada that by insisting on meaningful price improvement, the liquidity of the dark markets dropped but more importantly the liquidity of the lit markets rose. With appropriate levels of competition in lit markets, more liquidity in general leads to lower transaction costs, more representative prices and less ability to manipulate all or which translates to markets which are fairer and more efficient,….”
Click on the link above for the news piece, and see our research on dark pools under Research.