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Apr 11, 2014

Exclusive: SEC eyes test that may lead to shift away from ‘dark pools’

WASHINGTON/NEW YORK (Reuters) – U.S. securities regulators are considering testing a proposed reform that could drive business to major stock exchanges and away from alternative trading venues such as “dark pools” that critics say may be hurting investors by reducing the quality of pricing.

The proposal, which has so far only been discussed among staff involved in policymaking at the U.S. Securities and Exchange Commission, could limit how much trading occurs inside brokerages and in dark pools, according to people familiar with the matter.

Apr 11, 2014

SEC eyes test that may lead to shift away from ‘dark pools’

WASHINGTON/NEW YORK, April 11 (Reuters) – U.S. securities
regulators are considering testing a proposed reform that could
drive business to major stock exchanges and away from
alternative trading venues such as “dark pools” that critics say
may be hurting investors by reducing the quality of pricing.

The proposal, which has so far only been discussed among
staff involved in policymaking at the U.S. Securities and
Exchange Commission, could limit how much trading occurs inside
brokerages and in dark pools, according to people familiar with
the matter.

Apr 7, 2014

Analysis – Dark markets may be more harmful than high-frequency trading

NEW YORK (Reuters) – Fears that high-speed traders have been rigging the U.S. stock market went mainstream last week thanks to allegations in a book by financial author Michael Lewis, but there may be a more serious threat to investors: the increasing amount of trading that happens outside of exchanges.

Some former regulators and academics say so much trading is now happening away from exchanges that publicly quoted prices for stocks on exchanges may no longer properly reflect where the market is. And this problem could cost investors far more money than any shenanigans related to high frequency trading.

Apr 7, 2014

BlackRock shakes up management amid succession planning

NEW YORK (Reuters) – BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz) is reorganizing its senior management ranks as the world’s largest money manager works towards an eventual succession plan for Larry Fink, its chief executive officer and co-founder.

New York-based BlackRock, which manages $4.3 trillion in assets, is shifting at least 10 senior executives into new or expanded roles, according to an internal memo seen by Reuters on Sunday.

Apr 6, 2014

BlackRock shakes up management, names new co-president, COO: memo

NEW YORK (Reuters) – BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz), the world’s largest money manager, is reorganizing its senior management, shifting at least 10 senior executives into new or different roles, according to an internal memo seen by Reuters on Sunday.

Both Larry Fink, chief executive and chairman of BlackRock, which has more than $4 trillion in assets under management, and Rob Kapito, president, will stay in their roles.

Apr 6, 2014

Dark markets may be more harmful than high-frequency trading

NEW YORK (Reuters) – Fears that high-speed traders have been rigging the U.S. stock market went mainstream last week thanks to allegations in a book by financial author Michael Lewis, but there may be a more serious threat to investors: the increasing amount of trading that happens outside of exchanges.

Some former regulators and academics say so much trading is now happening away from exchanges that publicly quoted prices for stocks on exchanges may no longer properly reflect where the market is. And this problem could cost investors far more money than any shenanigans related to high frequency trading.

Apr 5, 2014

Exclusive: IEX eyes stock exchange status as firms come knocking

NEW YORK (Reuters) – The upstart stock trading venue featured in Michael Lewis’ book “Flash Boys: A Wall Street Revolt,” may apply to become a fully registered stock exchange sooner than planned, IEX Group Inc’s chief executive said on Friday.

“Flash Boys” hit the stands on Monday and unleashed a fierce debate over the fairness of the U.S. stock market, which the book characterized as rigged in favor of high-speed traders who use their advantages to bilk the system for billions.

Apr 5, 2014

IEX eyes stock exchange status as firms come knocking

NEW YORK, April 4 (Reuters) – The upstart stock trading
venue featured in Michael Lewis’ book “Flash Boys: A Wall Street
Revolt,” may apply to become a fully registered stock exchange
sooner than planned, IEX Group Inc’s chief executive said on
Friday.

“Flash Boys” hit the stands on Monday and unleashed a fierce
debate over the fairness of the U.S. stock market, which the
book characterized as rigged in favor of high-speed traders who
use their advantages to bilk the system for billions.

Apr 3, 2014

KCG paid chief executive Coleman $10.4 million for 2013

NEW YORK (Reuters) – Trading firm KCG Holdings (KCG.N: Quote, Profile, Research, Stock Buzz) awarded its chief executive, Daniel Coleman, $10.4 million in 2013, the year in which the company was formed by the $1.4 billion takeover of Knight Capital Group by rival Getco, according to a regulatory filing.

Coleman, who had been CEO of high-speed trader Getco, earned a salary of $500,000, with the remainder of his earnings in stock and options awards, as well as a $700,000 cash bonus, according to the company’s proxy statement with the U.S. Securities and Exchange Commission, released late Thursday.

Mar 31, 2014

U.S. stock markets are rigged, says author Michael Lewis

NEW YORK (Reuters) – The U.S. stock market is rigged in favor of high-speed electronic trading firms, which use their advantages to extract billions from investors, according to Michael Lewis, author of a new book on the topic, “Flash Boys: A Wall Street Revolt.”

High-frequency trading (HFT) is a practice carried out by many banks and proprietary trading firms using sophisticated computer programs to send gobs of orders into the market, executing a small portion of them when opportunities arise to capitalize on price imbalances, or to make markets. HFT makes up more than half of all U.S. trading volume.