German Dark Pool Closes Three Years After Major Brokers Revolted
- Morgan Stanley, Credit Suisse withdrew amid trading quirk
- Incoming European rules will limit dark-pool market share
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Deutsche Boerse AG is closing its dark pool for stocks, a sign the venue never recovered after major brokers unplugged from it three years ago.
The company confirmed its dark pool, called Xetra MidPoint, will close this summer. Brokers Credit Suisse Group AG and Morgan Stanley stopped sending orders to it in 2013 because they worried a quirk in the system, involving a partnership with Liquidnet Holdings Inc., allowed other traders to sniff out their trading intentions, according to reports at the time.