Exchange group Nasdaq OMX has followed in the footsteps of its counterpart NYSE Euronext by allowing dark alternative trading systems (ATSs) in the US to report their trading volumes through its FINRA/Nasdaq Trade Reporting Facility (TRF).
From mid-November, dark ATSs will be able to separately publish trading activity free of charge on Nasdaq OMX’s automated trade reporting and reconciliation service. The statistics will be made available on the Nasdaq OMX Trader website at the end of each day. According to Nasdaq OMX, most broker dealers trading NMS stocks are already connected to its Automated Confirmation Transaction (ACT) system, the technology platform that underpins the TRF.
Currently, daily share volumes on Nasdaq OMX’s Trader website are displayed using a market participant identifier for broker-dealers who have chosen to participate.
“We recognised that the industry would benefit from separate reporting of market share statistics for participants operating ATS dark pools,” said Eric Noll, executive vice president of Nasdaq OMX Transaction Services. “If the regulatory environment becomes more demanding for dark pools, Nasdaq OMX will be at the forefront to help firms meet their reporting obligations.”
NYSE Euronext announced a similar initiative on Tuesday, also scheduled for launch in November, and revealed that Barclays Capital, GETCO, Goldman Sachs, Knight and UBS – which collectively account for 51.8% of US dark pool volume, according to data for August from boutique brokerage Rosenblatt Securities – have already volunteered to use its TRF service.