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HK securities regulator to ban retail investors from "dark pools"

Friday, May 15, 2015 - 18:51

[ HONG KONG] Hong Kong's securities regulator will ban individual investors from participating in off-exchange equities trading platforms known as 'dark pools' from Dec 1 2015, according to new rules published on Friday.

The Securities and Futures Commission published its long-awaited conclusions on a new regulatory regime for so-called 'dark pools' following a Feb 2014 consultation. The regulator said it would ban individual investors, also known as retail investors, from participating in these share trading platforms.

'Dark pools' are equities trading platforms operated by broker-dealers which allow investors to buy and sell shares in private. These private exchanges have drawn regulatory scrutiny across the globe, amid fears they distort public markets and disadvantage investors.

REUTERS

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