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FINRA Shining New Light on Dark Pools?

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    Seth Merrin, LiquidNet founder and CEO, on FINRA’s investigation into dark pools.

  • Duration 2:51
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Shedding light on dark pools the Financial Industry Regulatory Authority -- reportedly plan and a -- -- hidden trading venues and its chief Richard Ketchum is bound to shed light on the fifty some odd dark pools and the computerized trading.

But to regulators have the standing to carry this out these transparency calls joining us now -- except -- foundered sealed liquid net holdings.

One of the largest dark pools Seth you've got like 700 asset manager around the world you trade Foreman 41 markets.

Every time -- tradable officers like 40000 shares of more.

What is the problem that -- worries about here and who gets hurt by it.

Father of the -- about manipulation in the worried about.

You know certain traders high frequency traders and others.

Buying in the -- markets on the exchanges and and changing the prices in the dark pools which is really about manipulation so they really want to understand what's going on in these dark pools.

Is that going on and doesn't really amount to -- any impact on me an individual investor in the market.

You know those pennies add up and it's a lot more -- -- what we're talking about is.

You know when it comes to institutions I have to buy millions of shares to tell you about a big impact and.

-- like it's typical on Wall Street were very few make a lot of money at the expense of very money.

But let me just back up you know not all dark pools are created April are dark liquid -- that caters to institutional traders.

Are dark pool has an average execution size about 250.

Times that found on the other dark pools form exchanges are dark fall also provides a 100% price improvement on most treads.

Which that's value added.

That's not you know the big issue is those fifty different dark pools that don't provide value -- above and beyond what's found on the exchange if only.

You're dart for known -- -- less sinister name is very dark container like you think that it does your dark -- liquid debt outright ban high frequency traders from bill and in doing their thing on your exchange -- we have now we are high frequency trading.

-- Conferencing trader -- free good OK one last thing.

The whole essence of your business is to keep stuff private is it your business heart when regulars come and decide they want new transparency want to shine a light.

On stuff that was private.

So what we need is we need investor confidence in this market so anything that the regulators can do.

To -- and maintain investor confidence where our way for right so they have to understand what's going on there is manipulation you have to get rid of all right Natalie better for your business that's better for best of luck working with better there -- -- merits of liquid net Carol.

Our guys think -- the London well saga is hitting him again this time in the wallet.

Jamie Dimon facing a 30% pay cut after last year's six point two billion dollar trading loss.

Yet the stock.

Seven and a half percent of the last month take a look at right now is actually up four cents come up and analysts who just --

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