Nine leading fund managers of the world have formed a consortium to launch a dark pool, an anonymous venue for equities trades, to prevent high-frequency firms from disrupting their trades and raising costs.
The effort, spearheaded by Fidelity and supported by BlackRock, Bank of New York Mellon, JPMorgan Chase and T. Rowe Price Group, will be run at little or no profit creating a private trading venue for the benefit of mutual fund shareholders.
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The dark pool which was initially code-named as sakura, after the Japanese word for cherry blossom, will be called Luminex and Fidelity will hold 60% ownership of the venture.
The company, expected to be launched in the recent future, will begin trading later in 2015 with each company having representatives on the board to work together on decision-making.
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