February 24, 2010
There is a two-tier structure in financial markets. Dark pools are the tools of the more privileged tier. I have no problem with this to the degree the privilege is a product of success. However the privilege is not entirely a product of success. It is also the product of a sophisticated recursive system that has evolved over the history of our capitalist society. Dark pools are a product of this evolution, an ongoing effort (i.e. recursive) to escape and frontrun government efforts to protect the financial system. Because dark pools have been in existence for a decade, they are on the verge of being incorporated into the system. SEC regulations are one inevitable step in this direction. Companies making dark pools available to the small investor is another example. These efforts are late and impotent in addressing the efforts of large investing entities to frontrun the government, but are vital to incorporating dark pools into the financial system. Please do not falter.