What Singapore’s dark pool means for banks

Author: | Published: 24 Nov 2009

As Singapore’s stock exchange prepares to jointly launch Asia’s 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...