November 19, 2015
The SEC has voted to propose new rules to enhance transparency and regulatory oversight of dark pools.
Pursuant to the new rules, alternative trading systems (ATS) that trade stocks listed on a national securities exchange (NMS stocks), including dark pools, would be required to publicly disclose detailed information via the new form ATS-N, including:
- Information regarding trading by the broker-dealer operator and its affiliates on the ATS;
- The types of orders and market data used on the ATS; and
- The ATS’ execution and priority procedures.
“Investors and other market participants need more and better information about how alternative trading systems work. The proposed changes would represent a critical step forward in delivering greater transparency to investors and enhancing equity market structure,” said SEC Chair Mary Jo White.