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SEC Seeks To Increase Transparency In Dark Pool Trading Following Foster, New Democrat Recommendations

Nov 23, 2015
Press Release

Washington, DC—Last week, the Securities and Exchange Commission (SEC) proposed rules to increase transparency in dark pool trading. The proposal comes after Congressman Bill Foster and members of the New Democrat Coalition Financial Services Task Force urged the SEC to make the changes.

In June, Foster and others wrote SEC Chair Mary Jo White asking the SEC to expand and standardize the information made available to the investing public by alternative trading systems (ATSs). A copy of the letter is available here.

In July, Chair White responded, saying SEC staff is developing recommendations to expand the information that ATSs are required to disclose to the SEC and require ATSs to make operational information available to the public for the first time. A copy of the letter is available here.

On November 18, the SEC officially proposed a rule making these changes. Details on their proposal are available here.  

“The increased transparency will help investors make better informed decisions and could lower trading costs and increase market liquidity” said Foster. “As the SEC Chair Mary Jo White has said, the regulatory framework for ATSs is largely unchanged since its adoption in 1998.”

To develop these proposals, Foster and the New Democrat Coalition convened a series of meetings with industry participants. This is part of a broader effort to enhance transparency for investors and better facilitate capital formation.