The US Securities and Exchange Commission’s (SEC’s) proposed rules on dark pools may limit the frequency of transactions between institutional investors. Retail investors will have more information available to them, but their institutional counterparts could suffer from the exposure.
“Dark pools are not necessarily unfair,” said David Lynn, regulatory partner for Morrison & Foerster in Washington DC. “This is a misplaced conception. In general, people thought the dark pool system worked well. They are distinctive transactions – it is not Mom and Pop investing on...