FINRA Begins Publishing Dark Pool Trading Data
FINRA has begun publishing security-by-security trading data provided by alternative trading systems (aka dark pools). The data will be published on 2-week delay for Tier 1 NMS securities and 4 weeks for other securities. Pursuant to Rule 4552, ATSs must report the data to FINRA for a given week within 7 days following the week end. FINRA promises to publish the Tier 1 data no later than the following Monday and two weeks thereafter for other securities. FINRA claims that the reporting will make the markets more transparent and give equal access to information already available to professional investors.
OUR TAKE: Perhaps, we should call this the “Michael Lewis” data because its publication appears in response to his book about the opacity of the high frequency trading world. One big question is who would use 2-week old ATS trading data and for what purpose. However, if FINRA collects the data, the regulator might as well make the information available.