Commentary

The retail trader army doesn’t understand dark pools

An SEC probe is not challenging the principle of dark pool trading, but a model that resulted in information transfer that violated market rules

Markets are changing, and investors need to understand how block trades really work
Markets are changing, and investors need to understand how block trades really work Photo: Oscar Wong/Getty Images

Jeffrey O’Connor is a senior execution consultant and market insight analyst for US equities at Liquidnet

The recent surge in retail trading is important for the vibrancy of capital markets and the price formation process.  However, the market structure which underpins elements of equity trading has also come under severe criticism by these new entrants.

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