There is something inherently unfair about dark pools quoting to only their subscribers. It does not matter what the motivation is. Simply put, such activities (re)create a two-tiered market. The public receives one set of information from the Securities Information Processor (SIP) while those that are able to accept direct feeds get greater price discovery and supply/demand information. This is completely different from the ongoing SIP vs. direct feed latency discussion. This is purely about information availability, dissemination, and access. Indeed, we applaud genuine efforts to increase transparency – such as with Display and Display-linked Reserve. The market structure has mechanisms so that displayed liquidity is publicly available. If you believe in transparency and equal access to information, then dark pools quoting to only their subscribers is a moonwalk – an elegant set of steps that moves the market and its structure backward. We respectfully urge the SEC to reject Form ATS filings that devise such private quoting schemes.
Smelling a lot like market funky business done in terms no layperson could understand. Manipulation by obfuscation?