Banks agree to dark pool disclosure

25 May 2010

A number of financial institutions including UBS and Deutsche Bank have agreed to provide details of trades on dark pools.

Other banks involved in the new initiative include Citi, JPMorgan Casenove, Morgan Stanley and Credit Suisse.

According to Markit, a provider of global financial information, it will collect data from the banks on a daily basis as part of a wider strategy to increase transparency within the industry.

Information will be validated then be available on Markit’s website the following afternoon.

Data will only feature trades matched on systems such as CS Crossfinder, JPM-X, UBS Pin and DBA.

John Serocold of the Association for Financial Markets in Europe, said: “This initiative is designed to bring further transparency into this area of over-the-counter trading by providing verified data where previously there has been only speculation, and by giving a clear indication of the actual levels of trading in crossing engines.”

“As a further step in support of making more information freely available to all market participants, it should provide useful data for the MiFID review being undertaken this year.”

The new system went live yesterday (May 24th) following two weeks of testing.

By Jim Ottewill

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