Goldman Sachs tells U.S. SEC “dark pools” help investors

October 27, 2009

Oct 27 (Reuters) – Anonymous trading venues known as “dark pools” are a technological evolution that have benefitted both institutional and retail trading by bringing down transaction costs, Goldman Sachs Group Inc said in a memo to the U.S. Securities and Exchange Commission.

Last week, the SEC voted unanimously for ways to make the dark pools more transparent, such as revealing the electronic trading messages that are sent to a limited group of market participants.

In a report submitted to the SEC on Oct. 22, Goldman said the investing community — especially retail — has benefitted from the evolving market structure and industry competition.

The Goldman report, posted on the SEC website, summarized a meeting held on Sept. 24 between its executives and the commission staff to discuss issues involving market structure including short selling and dark pools.

In the report, Goldman stated five common myths regarding dark pool trading and supplied arguments in an effort to dispel those myths.

Dark pools are trading platforms where buyers and sellers can anonymously match large blocks of stock, keeping details of the deals and prices concealed to prevent distorting prices in the broader market.

Dark pools, the largest of which are run by banks such as Goldman Sachs and Credit Suisse <CSGN.VX>, account for an estimated 10 to 15 percent of overall U.S. equity volume.

Goldman said in the report that increased competition from dark pools pushes all execution venues to compete for retail order flow in a superior manner.

“While market structure evolution has not been without its challenges, they have been accompanied by a secular decline in both implicit and explicit trading costs, benefiting primarily retail investors,” Goldman said in the report.

(Reporting by Sakthi Prasad in Bangalore; Editing by Jon Loades-Carter)
((sakthi.prasad@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sakthi.prasad.reuters.com@reuters.net))

6 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Websites worth visiting……

[...]here are some links to sites that we link to because we think they are worth visiting[...]………

Online Article……

[...]The info mentioned in the article is some of the best available [...]………

Fantastic article post.Really thank you! Want more.

A round of applause for your blog article. Keep writing.

I really liked your blog article.Much thanks again. Really Great.

Im grateful for the article post.Thanks Again. Keep writing.

Great, thanks for sharing this blog article.Really looking forward to read more. Awesome.

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Awesome website

[...]the time to read or visit the content or sites we have linked to below the[...]…

Online Article…

[...]The information mentioned in the article are some of the best available [...]…

Related…

[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over[...]…

You should check this out

[...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]…

Cool sites

[...]we came across a cool site that you might enjoy. Take a look if you want[...]…

Links

[...]Sites of interest we have a link to[...]…

Cool sites

[...]we came across a cool site that you might enjoy. Take a look if you want[...]…

Check this out

[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]…

Websites we think you should visit

[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]…

Awesome website

[...]the time to read or visit the content or sites we have linked to below the[...]…

Visitor recommendations

[...]one of our visitors recently recommended the following website[...]…

Recent Blogroll Additions…

[...]usually posts some very interesting stuff like this. If you’re new to this site[...]…

Recent Blogroll Additions…

[...]usually posts some very interesting stuff like this. If you’re new to this site[...]…

Visitor recommendations

[...]one of our visitors recently recommended the following website[...]…

Great website

[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]…

Websites we think you should visit

[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]…

Gems form the internet

[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]…

Related…

[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over[...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Websites we think you should visit

[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]…

Awesome website

[...]the time to read or visit the content or sites we have linked to below the[...]…

Sites we Like…

[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose [...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Cool sites

[...]we came across a cool site that you might enjoy. Take a look if you want[...]…

Websites worth visiting

[...]here are some links to sites that we link to because we think they are worth visiting[...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Visitor recommendations

[...]one of our visitors recently recommended the following website[...]…

Great website

[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Blogs ou should be reading

[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]…

Check this out

[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]…

Links

[...]Sites of interest we have a link to[...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…