Skip to content
Subscriber Only

Dark Pools Would Have to Shed Light on Conflicts Under SEC Rule

  • Commissioners propose new requirements in unanimous vote
  • Agency seeks rules amid complaints over preferential treatment
Updated on

Wall Street’s private stock markets would have to reveal whether they favor any particular users including high-frequency traders under a proposal approved Wednesday by the U.S. Securities and Exchange Commission.

Many of the new disclosure requirements sought by the SEC mirror those currently reserved for public markets such as The New York Stock Exchange. The regulatory effort follows a series of enforcement actions in which Investment Technology Group Inc. and UBS Group AG paid tens of millions of dollars to settle allegations they misled investors about how their dark pools worked.