On Tuesday, executives from the top financial exchanges will meet with the Securities and Exchange Commission to discuss potential dark pool regulations.
According to The Wall Street Journal’s Jacob Bunge, chief executives from?NYSE Euronext (NYSE:NYX), Nasdaq OMX Group?Inc. (NASDAQ:?NDAQ) and BATS Global Markets Inc. will meet for a discussion of possible securities trading regulations for “dark pool” and other private venues.?
The desire for change comes as off-exchange trading has reached record heights this year with approximately 36% of all daily stock trading occurring on private markets in the first quarter, reported Bunge.
For the exchanges, the rise in off-exchange trading results in declining trading fees.?
The timing of the meeting also comes as the regulator undergoes a change at the top. It is ushering in a new?chairwoman,?Mary Jo White;?she was confirmed by the Senate on Monday.?
Previously, Robert Greifeld, NASDAQ OMX’s chief and the Duncan L. Niederauer, NYSE Euronext’s chief have independently expressed concerns regarding the increasing trend of trades exiting the exchanges, but there have not been any proposals made from their conversations, reported The New York Times.
Joe Ratterman, BATS chief, has been quiet on the topic until now.?
At Tuesday’s meeting, the executives could recommend a ?trade at? rule proposal. This enables trades to take place away from an exchange but only if a customer receives a “significantly better” price than what had been available from an exchange.
Justin Schack, a managing director at Rosenblatt Securities said to The New York Times,??If the heads of the country?s biggest exchanges are all getting together to raise the issue, it just underscores how important this is to the markets and to these companies specifically.??
Spokesmen from the exchanges did not comment on the meeting.