The SEC plans to ramp up enforcement actions against dark pools according to Bloomberg. According to recent statements by Daniel Hawke, Chief of the SEC’s Division of Enforcement’s Market Abuse Unit, the agency is focusing on order types, broker routing, and payment for order flow. The SEC will join the NY Attorney General who also is investigating what he describes as “predatory practices” in dark pools.
Bloomberg also reported that Goldman Sachs, Credit Suisse, and UBS AG dark pool clients had to temporarily redirect order flow away from each firms’ dark pool during a period of the heaviest market volume in almost three years last week. Sources cited in the article noted that Credit Suisse’s issue affected less than 5 percent of the platform’s clients and the UBS outage lasted approximately 32 minutes.