Dark Pools will not be dark in 2010

[limitupmike2]

SEC proposing new rules that will shed light on the dark pools giving individual traders like ourselves a far more celar view of real time pricing and volume!

http://www.sec.gov/rules/proposed/2009/34-60997fr.pdf

 

[The Big D]

This will presumably increase the difficulty of moving volume and thereby help the small guy in the short run.

Despite being the aforementioned small guy, I can see bad consequences to this in the long run. The funds moving large volume have clients with political clout, and if this decreases their results (and presumably it will) then they will use that clout to change the rules. Those changes might well be worse than the current status quo.

All in all, I'd be OK keeping things as they are.

 

[indahook]

And instead of seeing nothing you will just see 1x1 up and down the box.

Non-event.

 

[wutang]

Quote from indahook:

And instead of seeing nothing you will just see 1x1 up and down the box.

Non-event.

True, not like your going to find the treasure trove of big blocks.

 

[jprad]

Quote from indahook:

And instead of seeing nothing you will just see 1x1 up and down the box.

Non-event.

You don't think it'll have an effect on those who favor limit over market orders?

 

[crgarcia]

Quote from limitupmike2:

SEC proposing new rules that will shed light on the dark pools giving individual traders like ourselves a far more celar view of real time pricing and volume!

http://www.sec.gov/rules/proposed/2009/34-60997fr.pdf

I bet they will show the trades AFTER they occured.

At best and end-of-day report Fidelity sold their entire, $500M holdings in XYZ.

At worst an quarterly report.

 

[limitupmike2]

it is obvious that the dark pools now have roughly 10 -12 % of total trading volume.. more transparency is a good thing, but it will force a larger number fo trades and smaller volume per trade.. anyway I have seen lots of concern on here about dark pools.. at least they are doing somethign about it..or at least trying. The sec is taking public comments so you can write them if you want this legislation. I am obvioulsy agianst more regulation.. but I am all for more transparency

 

[indahook]

Quote from jprad:

You don't think it'll have an effect on those who favor limit over market orders?

No. I do not. REG NMS applies to all order types. So unless your being extremely aggresive/stupid with a LARGE piece you will be fine. That being said I use limit orders all the time. Even if its only 1000 shares. I`ll just moved it up a tier at a time until i`m filled.