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’What lurks beneath Italian banks…
… a swirling, shifting sea of over-the-counter trading.
On Monday, Zero Hedge pointed to recent trade data from Goldman’s dark pool platform — SigmaX — which appeared to show a pronounced fascination with Italy recently.
Let there be light … pools
You’ve heard of dark pools, right?
Well meet their opposite. On Tuesday, Credit Suisse announced it was launching a ‘light pool’ aimed at institutional investors wary of the shadowy, murky dark.
Or,
Trouble at Turquoise… [updated]
Something very murky indeed went on in the London Stock Exchange’s flagship Turquoise trading system on Tuesday.
We know that because the LSE told us (via Reuters):
RTRS-LSE SAYS TRADING DISRUPTION TO TURQUOISE MAY HAVE OCCURRED IN “SUSPICIOUS CIRCUMSTANCES”
The unequalizers
We spell ‘unequalizer’ with a ‘z’ in the title as an homage to Edward Woodward, (naturally).
Although, in this case, we’re actually referring to the new breed of internalising institutions on Wall Street and in Europe,
Why yes, August was rubbish
File this one in the (bulging) ‘no one ❤ stocks’ archives.
August in London, according to the London Stock Exchange:
In August, 15.6 million trades were carried out across the Group’s equity electronic order books,
A dark shadow sweeps over Asia…
Dark pools of liquidity could be on their way to the Hong Kong mainstream, and one of those pools is potentially being set up in Singapore this year. Is Asia catching up to the US and Europe in this shadowy arena?
Risk magazine has the story on an intriguing arms race in Asian equities innovation:
Why are regulators afraid of the dark?
Dark pools, that is.
Craig Pirrong — a professor of finance at the University of Houston, but known round these parts as the Streetwise Professor — mounted an argument in defence of dark pools on Tuesday.
Exchanges warn of ‘dark pool’ dangers
The world’s stock and derivatives exchanges on Tuesday warned G20 leaders that the proliferation of alternative trading venues such as “dark pools” could harm the “proper functioning” of their markets.
The Cold War in high frequency trading
This April 2009 quote from Rick Bookstaber, with its overtones of Cold War mutually-assured destruction, seems eerily prophetic given recent events involving the alleged theft of Goldman Sachs’ proprietary high-frequency trading code by a programmer of Russian origin: