Dark Pools Face More Enforcement Actions, SEC Lawyer Says
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The U.S. Securities and Exchange Commission plans to bring more enforcement cases against dark pools and private trading venues whose opaque rules and incentives may harm investors, one of the agency’s senior attorneys said.
The SEC is investigating special order types, how brokers route trades and payments they receive for sending customer orders to wholesale market makers, Daniel M. Hawke, chief of the SEC’s market abuse unit, said today at a conference in Washington. Regulators have said those arrangements create conflicts of interest for brokers.