U.S. Exchanges Get Test to Curb Dark Trading in SEC Program
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U.S. stock exchanges will be permitted to test a restriction that could shift more trading to their venues as part of a pilot program announced by the Securities and Exchange Commission.
The experiment was sought by exchange operators including Nasdaq OMX Group Inc. and Intercontinental Exchange Inc., which have seen their share of trading fall as private platforms such as dark pools have taken 37 percent of share volume, according to data compiled by Bloomberg. The test will prevent trading outside the exchanges unless a competing venue or broker offers a significantly better price or size lot to investors, according to an order posted on the SEC’s website yesterday.