Authorities’ approach in the recent settlements suggests that they are not focusing on the mechanics of dark-pool trading, or on which parties may stand to lose from activities there, according to the Healthy Markets Association, which wants to give investors a greater voice in the debate over reforming U.S. financial markets.
“The dark pool cases to date demonstrate that regulators (and the SEC in particular) are focused on treating dark pool abuses as predicated largely on inadequate disclosures, filing violations, and books and records violations, rather than on unfair practices,” said a Healthy Markets report set to be released tomorrow examining past and current investigations.
“Investors and their brokers must revise their own practices and expectations to better protect themselves from dark pool abuses,” the report said.
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