Wall Street Dark Pools to Come Out of Shadows Thanks to SEC
- U.S. regulator requires more disclosure about conflicts
- Critics argue that high-frequency traders have abused venues
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Wall Street banks will have to cough up more details on the private stock markets they run, which roughly account for an estimated one-seventh of all U.S. equities trading.
Securities and Exchange Commission members unanimously approved rules Wednesday that force trading venues known as dark pools to disclose more data and reveal potential conflicts of interest. The SEC proposed the regulations -- some of which resemble requirements for public stock exchanges -- in 2015 after firms including UBS Group AG paid tens of millions of dollars to settle allegations that they allowed practices that benefited high-frequency traders without properly informing other clients.