New SEC Rules for Dark Pools Will Expose Conflicts of Interest
- The proposed amendments would enhance transparency and oversight of alternative trading systems.
The U.S Securities and Exchange Commission (SEC) has today voted to propose new rules to enhance operational transparency and regulatory oversight of alternative trading systems that trade stocks listed on a national securities exchange, including the infamous “dark pools.”
The new rules would require an exchange to file detailed disclosures about its operations and the activities of its broker-dealer operator and its Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term. These disclosures would include information regarding trading by the broker-dealer operator and its affiliates on the trading system, the types of orders and market data used on the system, and its Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and priority procedures.
In addition, the proposal would make disclosures publicly available on the SEC’s website, which could allow market participants to evaluate whether to do business with an alternative trading system. They will be better informed when evaluating order handling decisions made by their broker and make more informed decisions regarding its order routing.
The detailed information would provide important insights regarding potential conflicts of interest when a broker-dealer operator’s business interests compete with the interests of market participants that access its trading system.
The new rules would also provide a process for the SEC to declare filings effective or ineffective, as well as provide a process to review amendments. The SEC says that the proposed processes would enhance its ongoing oversight and ability to monitor this segment of the equity market.
“Investors and other market participants need more and better information about how alternative trading systems work,” said SEC Chair Mary Jo White. “The proposed changes would represent a critical step forward in delivering greater transparency to investors and enhancing equity market structure.”
The U.S Securities and Exchange Commission (SEC) has today voted to propose new rules to enhance operational transparency and regulatory oversight of alternative trading systems that trade stocks listed on a national securities exchange, including the infamous “dark pools.”
The new rules would require an exchange to file detailed disclosures about its operations and the activities of its broker-dealer operator and its Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term. These disclosures would include information regarding trading by the broker-dealer operator and its affiliates on the trading system, the types of orders and market data used on the system, and its Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and priority procedures.
In addition, the proposal would make disclosures publicly available on the SEC’s website, which could allow market participants to evaluate whether to do business with an alternative trading system. They will be better informed when evaluating order handling decisions made by their broker and make more informed decisions regarding its order routing.
The detailed information would provide important insights regarding potential conflicts of interest when a broker-dealer operator’s business interests compete with the interests of market participants that access its trading system.
The new rules would also provide a process for the SEC to declare filings effective or ineffective, as well as provide a process to review amendments. The SEC says that the proposed processes would enhance its ongoing oversight and ability to monitor this segment of the equity market.
“Investors and other market participants need more and better information about how alternative trading systems work,” said SEC Chair Mary Jo White. “The proposed changes would represent a critical step forward in delivering greater transparency to investors and enhancing equity market structure.”