Australian dark pool rules shift liquidity back to the lit market
Decline in broker-dealer dark pool volumes after Asic introduces requirements for price improvement
The implementation of dark pool and market integrity rules by the Australian Securities and Investments Commission (Asic) last year has resulted in a significant decline in the number of trades executed off exchange on broker-dealer dark pools, say market participants.
While dark pool flows have remained at around 25–30% of the total market flows, (28.1% according to the ASX's latest report on February 7), the Australian regulator had become increasingly concerned with flows driven by large
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