World’s Biggest Wealth Fund Targets Single Dark Pool to Cut Fees
2015-04-20 05:57:06.277 GMT
By Jonas Bergman and Saleha Mohsin
(Bloomberg) -- Norway’s $890b wealth fund is taking the
rare step of publicly criticizing the proliferation of dark
pools, arguing the world’s biggest investors only need one such
platform.
* “There’s a rent extraction from all these intermediaries,”
Oeyvind Schanke, head of the fund’s asset strategies, said
in a telephone interview on Friday; “We are trying to
advocate that we need to bring some of this back to where we
started by getting the participants to meet, creating a
utility that’s there for the sake of transacting
institutional-sized blocks”
* The fund says institutional investors, and the savers they
represent, are wasting money paying multiple fees amid a
fragmentation of anonymous trading venues over the past
decade; the dark pools have become associated with the
phenomenon of front-running, in which bid and offer
information is used by high-frequency traders to preempt
transactions and make a profit at the expense of investors
* Link to full story
For Related News and Information:
Norway Wealth Fund Outsmarts Flash Boys as Algorithms Abandoned
World’s Biggest Wealth Fund Says Monetary Risks at Historic High
Dark Pools in Spotlight as Europe Moves to Fortify Markets
LSE Proposes Additional Auction to Lure Traders From Dark Pools
Market-structure news: NI MKST <GO>
To contact the reporters on this story:
Jonas Bergman in Oslo at +47-22-00-8213 or
jbergman@bloomberg.net;
Saleha Mohsin in Oslo at +47-22-00-8214 or
smohsin2@bloomberg.net
To contact the editors responsible for this story:
Tasneem Hanfi Brogger at +45-33-457-130 or
tbrogger@bloomberg.net
2015-04-20 05:57:06.277 GMT
By Jonas Bergman and Saleha Mohsin
(Bloomberg) -- Norway’s $890b wealth fund is taking the
rare step of publicly criticizing the proliferation of dark
pools, arguing the world’s biggest investors only need one such
platform.
* “There’s a rent extraction from all these intermediaries,”
Oeyvind Schanke, head of the fund’s asset strategies, said
in a telephone interview on Friday; “We are trying to
advocate that we need to bring some of this back to where we
started by getting the participants to meet, creating a
utility that’s there for the sake of transacting
institutional-sized blocks”
* The fund says institutional investors, and the savers they
represent, are wasting money paying multiple fees amid a
fragmentation of anonymous trading venues over the past
decade; the dark pools have become associated with the
phenomenon of front-running, in which bid and offer
information is used by high-frequency traders to preempt
transactions and make a profit at the expense of investors
* Link to full story
For Related News and Information:
Norway Wealth Fund Outsmarts Flash Boys as Algorithms Abandoned
World’s Biggest Wealth Fund Says Monetary Risks at Historic High
Dark Pools in Spotlight as Europe Moves to Fortify Markets
LSE Proposes Additional Auction to Lure Traders From Dark Pools
Market-structure news: NI MKST <GO>
To contact the reporters on this story:
Jonas Bergman in Oslo at +47-22-00-8213 or
jbergman@bloomberg.net;
Saleha Mohsin in Oslo at +47-22-00-8214 or
smohsin2@bloomberg.net
To contact the editors responsible for this story:
Tasneem Hanfi Brogger at +45-33-457-130 or
tbrogger@bloomberg.net