Related Articles
• Overnight Euro Libor in downturn- back below 200 day mvg avg Unlimited Central Bank liquidity has Euro Libor Rates falling.  The overnight rate has remained stubbornly high sinc ...read more
• FX Update- USD USD has taken back a good portion of its earlier losses, but remains generally lower vs. the majors with the USD Index down 1.35 ...read more
• European Equities Summary European equity indices surged after European policy makers announced plans to guarantee European debt issues and to help boost ...read more
• Paulson's post G-7 statement - energies focused on liquidity, capital, protecting investors, macroeconomic response, regulatory environment Text of Paulson at International Monetary and Financial Committee Meeting here <a href="http://www.treas.gov/press/relea ...read more
• Paulson's post G-7 statement - energies focused on liquidity, capital, protecting investors, macroeconomic response, regulatory environment Text of Paulson at International Monetary and Financial Committee Meeting here <a href="http://www.treas.gov/press/relea ...read more
• Paulson's post G-7 statement - energies focused on liquidity, capital, protecting investors, macroeconomic response, regulatory environment Text of Paulson at International Monetary and Financial Committee Meeting here <a href="http://www.treas.gov/press/relea ...read more
• FX Update- USD/CAD USD-CAD posted intraday lows of 1.1613, though with Canada on holiday Monday, liquidity is considerably thinner than usual. The ...read more
• FX Update: NY Outlook Further measures by European and the UK governments to ease the credit crisis resulted in rallying equity markets, and some semb ...read more
• Tbricks connects to BATS Europe October 13th, 2008 - Tbricks to offer trading access to the new alternative market BATS Europe ...read more
• IMF Chief Econ: Confident the System Will Be Repaired IMF Chief Economist Olivier Blanchard told Germany newspaper Handelsblatt said the Fund thinks economic solutions will be found ...read more

The continued rise of dark liquidity and the development of more sophisticated execution algorithms could increase regulatory obligations on brokers and/or exchanges, according to Mary Lou Von Kaenel, Managing Director, Management Consulting, Jordan & Jordan, and Greg Malatestinic, Senior Software Engineer, Jordan & Jordan.

Do Black Swans Swim in Dark Pools?

In the wake of regulatory changes aimed at price transparency and best execution, and as market participants wade through their post-Reg NMS and MiFID implementation issues, many wonder: where has all the liquidity gone?

Securities regulation in the United States and Europe has placed a spotlight on trade price reporting and quotes, and has set the stage for competition among exchanges, multilateral trading facilities and electronic communication networks. Focused on ensuring that investors receive the benefit of fair and competitive markets, the US Securities and Exchange Commission (SEC) and the Committee of European Securities Regulators have reduced barriers to entry in support of off-exchange trading with the introduction of Reg NMS and MiFID respectively, to accomplish their objectives. ...

Registered viewers can post questions and discussion points about this article below

---

Discussion of articles is limited to registered users. Click here to register now click here to return to the top of the page