EU reaches outline deal to cap "dark pool" share trading

Reuters

LONDON, Nov 21 (Reuters) - The European Union has reached anoutline deal on capping "dark" or off-exchange trading in sharesto shine a light on opaque corners of the market, sourcesfamiliar with the negotiations said on Thursday.

The bloc is finalising an update of its securities tradingrules, known as Markets in Financial Instruments Directive orMiFID, to reflect lessons from the 2007-09 financial crisis andrapid advances in trading technology.

Trading in a stock anonymously will be capped at 8 percentof the total amount traded of that stock in the EU.

So-called dark pool trading in a stock on an individualplatform would be restricted to no more than 4 percent of thetotal EU market for that stock.

The sources said that the EU's executive European Commissionwill conduct further work on how the caps would work inpractice, such as what happens when a cap is breached.

The European Securities and Markets Authority would collatedata on share trading gathered by national authorities, thesources added.

Rates

View Comments (0)