Big money managers led by Fidelity Investments are close to launching a private trading venue designed to let them buy and sell large blocks of stock without the involvement of Wall Street firms and high-speed traders, according to people familiar with the matter.
MarketWatch reports that nine firms including BlackRock, Bank of New York Mellon, J.P. Morgan and T. Rowe Price Group are forming a company that will operate a 'dark pool' — a private trading venue in which activity takes place outside of the public view — the people said.
The effort is unusual for the fund companies because they are rivals and typically use similar trading venues at big banks or public exchanges. They have banded together recently out of a shared desire to reform trading by cutting costs and weeding out high-frequency traders, who often have an unfair advantage, according to critics.
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