Stopping the Stock Market Arms Race

Bloomberg – Investors now have more than 50 different trading options to choose from. Up to 40 percent of transactions never meet centrally, and instead take place within dark pools, which don’t display buy and sell quotes. This threatens a vital function of the market — price discovery — and may deny some investors a better price.

High-frequency trading compounds the problem.

Regulation NMS [2], despite its good intentions, created as many problems as it solved. But the U.S. equity market needs bigger repairs than the SEC has in mind. more>


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