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Dark Pools’ Record Signals Looming Market Shock for Europe

  • Dark-pool trading has jumped 6.2 percentage points since 2010
  • EU rules starting in 2018 will limit trading on the venues
Updated on

Dark pools’ share of European stock trading has risen to a record, putting the traders who use them on a collision course with new regulations that will restrict buying and selling on the venues.

Dark pools -- initially meant to hide larger orders -- accounted for 9.1 percent of European equity trading in July, according to estimates compiled by broker Rosenblatt Securities Inc. That’s a 6.2 percentage point increase from the start of 2010. The dark pools’ share has climbed even as overall daily volume fell 20 percent.