December 14, 2009
I read this morning that trading in dark pools now comprises 40% of the trade volume for the New York Stock Exchange. I am deeply concerned that this practice has been allowed, and will be continued in some opaque form.
Dark pools should be banned...along with all the other financial chicanery (derivatives, collateralized mortgages, erosion of credit standards) that has nearly caused the collapse of the world's economic systems.
Why are some investors allowed to be in the markets and not abide the rules that are there for Everyman? The individual investor works and saves in good faith that the markets are regulated and fair for all. With dark pools, it is inside information, again, in a form that requires a big pay to play and outlay for computing power.
Stop it. Stop all the infractions. Put the focus of investors upon creating wealth through the development of a tangible product, or a service that ennables those who do, or something that can be marketed to the world, rather than how to suck the economy dry in yet another financial shell game.