For the first time, the majority of trading activities in the world’s largest and most-liquid public equity market are not publicly visible. This unprecedented shift means that more than half of stock trades are occurring in private venues, away from the public exchanges that were traditionally the cornerstone of market transparency.
Vero’s thoughts on the news:
The shift towards hidden trading venues poses significant implications for market transparency and fairness. As technology evolves, the reliance on algorithms and private exchanges in trading introduces new challenges and opportunities. While it can offer improved efficiency and potential cost savings, there’s a heightened risk of information asymmetry that could disadvantage individual investors. It’s crucial to develop balanced regulations that adapt to these technological advancements without undermining the core principles of equity and transparency in public markets.
Source: Wall Street Enters Darker Age With Most Stock Trading Now Hidden – Bloomberg
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