Goldman Sachs is not quite ready to get out of the pool.
The New York Times reports that Harvey Schwartz, the chief financial officer of Goldman Sachs, told analysts during a conference call to discuss the bank’s first-quarter earnings on Thursday that he had 'no strategic plans' to close the bank’s dark pool trading business known as Sigma X.
Dark pools are stock trading systems that allow buyers and sellers to remain anonymous outside of established exchanges like the New York Stock Exchange. The practice began drawing increased scrutiny from regulators as concerns grew that such practices could obscure the true value of stocks, and whether regulation has been able to keep up with new technology and other market conditions.
The recent book Flash Boys by Michael Lewis drew even more attention to dark pools by questioning whether high-speed traders were gaining unfair market advantages.
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