LONDON, July 21 (Reuters) - Dark pools or anonymous share trading platforms, must improve how they handle conflicts of interest, Britain’s markets watchdog said on Thursday in a review that stopped short of proposing any major shake-up.
Dark pools have been criticised for depriving the wider stock market of crucial pricing information. Big investors often use dark pools to avoid trading against more speculative types of traders.
The Financial Conduct Authority said firms operating dark pools have made significant progress in addressing the promotion and the management of conflicts of interest, but some improvements were needed.
The FCA said it found that users of dark pools welcome the additional liquidity. (Reporting by Huw Jones; editing by Jason Neely)