Dark pools to face SEC plan seeking more light on how they operate

Washington

DARK pools are about to be put on notice - time to go from black box to open book.

The US Securities and Exchange Commission is scheduled to vote on Wednesday on a proposal that would pull back the curtain on the private venues, which have faced complaints that they favour high-frequency traders over other investors. The plan would require that they disclose their rules of operation, including whether some traders get preferential treatment.

Dark pools have faced intense scrutiny over the past year from the SEC and regulators, including New York Attorney General Eric Schneiderman, who alleged that Barclays Plc lied to customers about the …