Bloomberg News

Exchange CEOs Said to Seek Dark-Pool Restrictions in SEC Talks

April 09, 2013

The chief executive officers of NYSE Euronext (NYX:US), Nasdaq OMX Group Inc. (NDAQ:US) and BATS Global Markets Inc. are meeting with U.S. Securities and Exchange Commission officials to discuss migration of trading away from their venues into dark pools, a person with knowledge of the meetings said.

The meetings in Washington today follow requests by the exchanges that regulators consider measures to curb dark pools, which let traders buy and sell large orders that aren’t publicly displayed. Possible restrictions include a “trade-at” rule that would allow dark pools to execute trades only if they offered better prices than are available on exchanges.

SEC staff members didn’t commit to consider any new rules and said the agency would continue to discuss the matter, said the person, who requested anonymity because the meetings aren’t public. SEC Commissioner Daniel Gallagher, one of two Republicans on the five-member panel, said he planned to meet with the CEOs of Nasdaq and BATS this afternoon.

“The numbers are pushing them to really want to refocus regulatory attention,” Gallagher said. “If you look at the market share of exchanges, the numbers are at all-time lows.”

To contact the reporter on this story: Dave Michaels in Washington at dmichaels5@bloomberg.net

To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net


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