Dark Pool Disclosures to Users Are Subject of Review by Finra
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Securities regulators are examining disclosures by broker-run trading venues known as dark pools, concerned they are not always giving their customers a complete picture of how they work.
The Securities and Exchange Commission and Financial Industry Regulatory Authority have identified “concerns” about alternative trading systems according to a letter Finra published on its website outlining regulatory and examination priorities for 2013. Most of the platforms known as ATSs are private venues owned by brokers that match buy and sell equity orders from customers.