Dec. 18, 2022
December 18, 2022 SEC should monitor growth in the proportion of dark trading volume, and take appropriate measures. Regulators should monitor developments with respect to internalization and dark pool activity. Regulators should consider introducing measures to restrict the use of dark orders and dark trading facilities if such activity becomes excessive, such as if the share of dark trading exceeds 50%. One possible measure would be to lower the threshold at which ATSs must display orders and meet general access requirements from the current level of 5% of the trading volume in a given stock. This proposal is consistent with the IOSCO principles and is analogous to the recommendations of CSA/IIROC and ASIC to monitor growth in dark liquidity.