THE IMPACT OF THE MINIMUM PRICE IMPROVEMENT RULE ON DARK POOLS
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Along with high-frequency trading, the rise of dark pools is among the most controversial topics in market structure. To address concerns, on May 26, 2013, the Australian securities regulator implemented a new rule requiring minimum price improvement before orders could be routed to dark trading venues. Professor Michael Aitken, CEO of the Capital Markets Cooperative Research Centre, reports on the rule change’s impact on market quality.
