| "Trading in today's market has increasingly migrated away from public exchanges, like the New York Stock Exchange, to private trading venues, mostly operated by big banks. Off-exchange platforms include "dark pools" that let traders post orders that are hidden from the rest of the market. They also have "internalizers," including firms like Citigroup, which pay retail brokers for the opportunity to handle trades before the orders reach a public exchange...But with some 40 percent of stock trades now occurring off-exchange, there is mounting evidence that the shift is obscuring the true prices of stocks, raising the cost of trading and, by extension, damaging investor confidence...Yet the response from American regulators largely has been to watch and wait. The inaction is in contrast to recent moves by Canada and Australia to limit dark trading. " |
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At www.nytimes.com
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