HONG KONG: With the Singapore Exchange about to start its own "dark pool" trading system, Hong Kong faces the issue of how to meet the challenge of the new trading mechanism.A "dark pool" is an electronic trading platform that allows investors to trade large amounts of stock without their identities, the trading volume or price being revealed.
The dozen "dark pools" in the city have become increasingly popular with pension funds and asset management companies. They allow institutions to keep their strategies hidden, reduce transaction costs and avoid setting off price movements.
But such secrecy, according to Hong Kong Exchanges and Clearing chairman Ronald Arculli, lacks transparency, and that has led some private bankers and fund houses to ban trades in these systems. Full Story
