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FBN’s Charlie Gasparino on whether you should be worried about dark pools when it comes to trading.
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The dreaded dark pools as they're -- -- Are now creating the New York Stock Exchange in the war for trading volume Charlie Gasparino has the exclusive details first explain to -- -- dark pools lie I was just gonna do it a dark pool is essentially an exchange.
Look at MS I think it's passed back in 2005004.
To SEC -- says that you know you could trade.
You don't have to send your -- you're treating orders like Merrill Lynch does have to send.
It holds buys and sells in New York Stock Exchange where you can match we did in the past.
Thank you -- -- to other places.
But those other places know what he really knows they don't print published prices they're known as dark pools that's why because it did not transparent.
I and that's what's going on out south for the first time we get bring it is for the New York Stock Exchange.
The dark pools in January combined to all the dark pools and we'll show you a chart of the top 33 and a few few seconds that all of them combined.
Now are doing war average daily trading volume at least January.
And it's probably going to be in February.
Then the New York Stock Exchange one -- -- -- -- night 900 million shares got New York Stock Exchange vs 920 -- dark pools now those are the three largest dark pools.
And here's the positive stories are about this.
Park police which is like just laid people off dispelled imploding their investment bank amid them real.
Libor scale -- everything else.
-- actually -- they actually recently beat Goldman Sachs they have a bigger dark pool that Goldman Sachs -- that decade in January.
Rosenblatt securities as some providing some of these numbers.
So this is really interest -- the dark pools are now beating -- New York Stock Exchange in terms of average daily trading volume.
We're waiting to get a from the NASDAQ I would assume you're beating the NASDAQ is well.
And we say trade environment wouldn't put exchange does.
It matches a buyer and seller -- -- Merrill Lynch you send your order why would I go through Barkley is vs the New York Stock Exchange.
Well depends on who you are if -- you.
You're going to the New York Stock Exchange.
And you're getting whatever price they print but if you're a big institutional investor you don't want anybody to know you're trading so guess what.
The senate to credit stories -- -- -- who knows what price they charge or maybe it's better.
That what we're getting because not everybody is not -- the one place this is the problem the -- become the competitiveness of this market.
Yes there is a competitive market various exchanges dark pools are an exchange of they are competing against with a New York -- that the problem is to not regulated the same in New York Stock Exchange and NASDAQ.
You publish prices.
Where's the Goldman Sachs dark pool price for apple.
-- the Credit Suisse to the number one -- their dog we don't know and that.
That yelled let's face it that means is lack of transparency to market and I will say this when you have this sort of this into mediation away from the major changes.
It's easier to have a flash crash because -- who knows what the real price that.
Is the concern I think because people don't really know part of -- these -- established names Credit Suisse Goldman Sachs.
There's outfits out in the midwest -- come to Kansas I heard there's a gigantic one out there.
-- -- -- -- -- -- -- -- -- -- -- -- No -- scared go to sell I think one of the two -- both that the Goldman in the other what happened next sigma acts I don't know if you had an acts does that make you don't know why didn't -- areas of scary and I -- -- -- -- sure.
I'm so very scared by the -- Investors should be -- out yesterday the reality of this thing -- from a regulatory standpoint.
Mary Shapiro just -- I think this is like one of her -- I think it's a huge -- I look to get on and ask about this.
She would say probably that it was you know she she need congressional -- -- these have tried she was into -- Adam wasn't trying to -- but anyway.
The question is Christopher -- didn't even know what they -- You know everybody Texas for Cox I would say this you don't do this book -- -- -- trading short detour everybody thinks it's these guys that catch all the crooks.
That investigation was started largely on the Chris Cox so you know would you start pointed figures he added.
He yes he did for two years before it became public that was his investigation so.
Just remember every year year and a half wrote that when you think eventually though the dark pools will be pinpointed by congress or whoever it -- -- that this is getting a little I don't think an editor at and we'll -- remember they leave the firms themselves are big lobbyists -- remember all the firms like the dark pools -- -- -- -- now.
I can tell you that don't you need around the CEO the New York Stock Exchange Bob Greifeld.
-- the CEO of NASDAQ have the first time the very agreed on anything was on how much they hate these dark pools they went at a meeting with Mary Schapiro.
They did I I hear from Duncan's people that he plans.
You know something coming up he's like back to the drawing forty want to do something.
There's value because these guys are killed them and look -- or -- -- -- January numbers are is that what -- -- of the ice wants to may be jettisoned some of the businesses that the nicely and we should point this out that's wind shifts torture.
Of the ice want to New York Stock Exchange their business is going to dark pools.
And they don't see any way to reverse that.
Spring.
Her this is -- right after I said spray our current -- probably as it sounds expressed.
What look at what -- scripture but it's it's but I'm tell it doesn't let sounds -- record it's.
Charlie Gasparino -- -- -- the black Berry yes thank you for.
