Dark Pools Face Enhanced Regulator Scrutiny

“Dark Pools” operators are now subjected to enhanced scrutiny from regulators, according to a Wall Street Journal Report.

Wall Street’s self-regulatory body, the Financial Industry Regulatory Authority (FINRA), sent 15 examination letters last month to ‘dark pools’ operators, seeking more information on  their operations, client profile and surveillance systems adopted.

What Were Dark Pools Set Up For?

Dark pools were set up to allow large investors to trade big blocks without having news of their orders move the price. Dark Pools don’t publish bids or offers on shares. They publish trade...