“Dark Investor Pools” and the S.E.C.

Populist politics for the masses, without truly benefiting the masses.

Multi-millions of shares are traded daily in “Dark Pools.” Quotes are listed after the trades are done. The pools are automated and enable institutional investors such as pension and mutual funds to quietly buy and sell holdings. This helps them transact very large contracts without divulging intentions. Pension and mutual funds and their small investor clients, benefit from lower cost transactions and lower prices.

The Securities and Exchange Commission has come down on the side of more disclosure, for disclosure’s sake. However, the commission has notoriously failed to discover serious Ponzi schemes before its eyes.( See the Earl J Weinreb NewsHole® comments.)