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Dark pools face fire from down under

New research from an Australian think-tank suggests that the use of dark pools could damage market quality and increase trading costs on public markets

The rapid growth of dark pools – anonymous share trading systems run by banks and market infrastructure providers – has come under fire from an Australian think tank, which claims the venues could increase trading costs, particularly in emerging markets where they are in their infancy.

The Capital Markets Co-operative Research Centre, based in Sydney, today released new research indicating that the use of dark pools could increase trading costs and harm the price discovery in certain markets

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