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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Sunday, April 29, 2012

Goldman Sachs Closes "Dark Pools" in Canada

It would be interesting to know exactly why Goldman Sachs closed its "dark pool" trades on the TMX in Canada.  They had planned on "beating Canada's biggest banks to the punch."

Canadian can only be most happy with the turn of events described below:
Goldman Sachs Closes Canadian Dark Pool Seven Months After Open
By Nina Mehta - Bloomberg Businessweek

Goldman Sachs Group Inc. (GS) (GS) closed Sigma X Canada today, shutting down the dark pool for equities seven months after starting it. 

The stock trading venue stopped taking orders, according to a statement from the Investment Industry Regulatory Organization of Canada. Since all orders expire daily on Sigma X Canada, none will be open after it closes, the agency said.

Virtually no trading occurred on the platform, which finished last on a list of 12 Canadian venues ranked by market share compiled by IIROC. Dark pools are private stock trading systems that don’t display offers to buy and sell shares to the public. 

Read the entire article here 


JEHR said...

Recently, I came across some information that may explain why Goldman closed its SIGMA-X dark pool operation--increased regulation (and a small market) in Canada:

"However, proposed regulations could change the current situation dramatically. The Canadian Securities Administrators and Investment Industry Regulatory Organization of Canada in July proposed new rules that would establish a minimum size for all dark orders, and restrict the use of dark orders below that minimum size to instances in which significant price improvement is delivered. By “significant,” regulators have indicated that they mean at least one tick, and half a cent in cases where the spread is one penny. This regime would render the country’s two biggest dark pools non-compliant and likely force them to alter their spread-capture structures, which have been critical to their success. It also would deter additional dark-pool launches by non-Canadian dealers like Credit Suisse, which has stated that gaining the de minimis dark-pool market share possible under such a regime, in a market that is already smaller than both the US and EU, would not be economically viable. The proposals have yet to be formally adopted, and dealers and other market participants have voiced serious concerns with them. This will be a situation to watch closely in 2012."

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