Politics & Regulation

New Hong Kong rule tracks dark pool trades


Glenn Lasko

Chris Jenkins

Operators of dark pools are required to identify off-exchange trades that they cross on Hong Kong’s main bourse, under a new requirement aimed at gauging the volume of so-called dark trades.

As of 1 February, these platform operators have been using a new transaction code for dark-pool transactions, which helps Hong Kong regulators to identify them from conventional exchange trades and thus measure the size of the market. Although the requirement is not yet part of the city’s trading rules, regulators have left open the possibility that it