Dark Pools Hamper Market Efficiency, Should Be Avoided, ASX Says
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Dark pools reduce efficiency by dividing markets and should be avoided unless there’s a good reason, such as block trades, to use them, said ASX Ltd. Chief Executive Officer Elmer Funke Kupper.
“Fragmentation is ultimately the enemy of efficient markets, so you need a good reason to not transact in a single market,” Funke Kupper, head of Australia’s biggest exchange operator, said in a speech in Sydney today. “Block trades, where institutions try to find each other with large orders in an efficient way with minimum market impact costs, is such a good reason.”