The Financial Industry Regulatory Authority (FINRA), the private-sector regulator of US brokerages, is considering new rules to better monitor trading in dark pools, private venues that don’t post investors’ bids.
The move was signaled by Rick Ketchum, chief executive of the FINRA, at a conference in Washington, D.C.
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FINRA may ask brokers to distinguish trades that occur in dark pools from ones that don’t, Ketchum told said. Doing so would enable FINRA to publish figures for how much trading occurs in every dark pool.
"That is an area we think raises some issues where we can, in a relatively non-burdensome way, shed some light into that area," Ketchum added.
"We are looking generally at the question about how to shed at least more surveillance light and perhaps public light on dark pools," Ketchum said.
Dark pools account for roughly 15% of all stock trading, up from about 5% five years ago, according to market watchers.
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