TheStreet TV: Don’t Dismiss Dark Pools Despite Scary Headlines Says Convergex CEO

By Gregg Greenberg | August 13, 2015

Dark pools are back in the headlines again following reports about Credit Suisse, Barclays and ITG settling allegations of manipulation with the government. Eric Noll, CEO of Convergex, says the current commotion is nothing new and likely won’t last long. 'This is part of a series of activities that has been going on in this space for quite a while now,' said Noll. 'I think it’s out of concern driven by the Flash Boys book and other concerns about the space, but clearly this is part of a longstanding series of investigations into the space.' Convergex is a global agency brokerage and trading related services firm. Convergex transacts over 2% of equity exchange volume and executes trades for institutional clients in over 100 markets. So-called dark pool trading involves trades that are routed through broker-run exchanges but are not disclosed until the order is complete, thus keeping the public uninformed. Institutional investors such as mutual funds, hedge funds and pensions often favor dark pools because it is less likely that parts of their large orders will get picked off before they're fully executed. However, potential abuses can occur in dark pools.