Nasdaq launches tool to monitor dark pool trading

[October 08, 2015] (Reuters) - Nasdaq Inc , the operator of Nasdaq stock market and eight European stock exchanges, on Thursday launched a tool to monitor dark pool trading activity.

A dark pool is a network that allows traders to buy or sell orders secretly, ruling out the possibility of other traders taking advantage of the order.

Dark pools have been criticized for their lack of transparency and as they could lead to less efficient pricing.

"Regulators globally are taking a more active role in monitoring and enforcing greater transparency ... of trading behaviors within dark pools specifically," Rob Lang, a Nasdaq executive, said in a statement.

(Reporting by Sudarshan Varadhan in Bengaluru; Editing by Savio D'Souza)

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