Paul Vigna from WSJ reported last night that Dark pools are going big time.
The New York Stocks Exchange, with its folksy history (the buttonwood tree and all that), its historic trading floor, and its reputation as the responsible exchange, now has its very own dark pool.
From the Dow Jones Newswires story by Andrew Ackerman and Jacob Bunge:
WASHINGTON–The Securities and Exchange Commission on Thursday approved a New York Stock Exchange initiative to lure retail investors with more-favorable prices than they would otherwise get by trading with an exchange.
Under the 12-month pilot initiative, called the Retail Liquidity Program, the Big Board becomes the first U.S. stock exchange allowed to offer retail, or individual, investors a better price–sometimes as little as a 10th of a penny higher or lower, depending on the transaction, than those available to institutional investors such as pension funds and hedge funds.
The NYSE program works along the same lines as “dark pools” that trade large blocks of shares for institutions. Dark pools are private platforms set up for anonymous stock trading.