Brokers voice worries on HK dark pool plans
Institutional investors that trade multiple Asian markets using swaps and synthetics may see their block size orders getting a later priority than other investors.
Investors could be disadvantaged under proposed rules for governing alternative liquidity pools (ALPs) in Hong Kong that, among other things, would give agency flows priority over proprietary orders, brokers say.
The city's Securities and Futures Commission (SFC) last week published a consultation paper that seeks to unify regulatory obligations on operators of ALPs, also known as dark pools, and which account for 2% of equity market turnover in Hong Kong. Licensing conditions are…
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