Two dark pools are in the news:
The two cases differ decidedly, according to industry pros. In the Pipeline case, the settlement was based on fraud and resulted in direct charges against individuals. Pipeline failed to disclose that more than 97 percent of orders in its dark pool at times were filled by a trading operation affiliated with the firm.
LeveL ATS is rebounding as 2012 comes to a close. It says clients are returning since its parent firm, eBX LLC, paid an $800,000 fine and settled charges that LeveL failed to properly safeguard information on customers’ unexecuted orders, which were stored and allegedly reused in a smart order router.
In the same article, news on brokers who are analysing the profile of those trading in their dark pools, e.g. The Light Pool by Credit Suisse:
The alternative system classifies users by how they trade. The venue categorizes participants, helping mutual funds, hedge funds, pensions and endowments trade only with parties they are comfortable with.
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