As Singapores stock exchange prepares to jointly
launch Asias first exchange-backed dark pool, (the
Chi-X/SGX joint venture), IFLR asked both the SGX and
bankers counsel in Singapore about the plans and what
they will mean for institutional investors.
Dark pools allow institutions to buy and sell large blocks
of shares anonymously until trades are complete. But critics
suggest that the pools use prices displayed publicly without
contributing any pricing information of their own. They also
argue that the more successful dark pools are, the less chance
there is of non-users finding buyers or sellers.
Others have criticised...