06.24.2016

Banks Reduce Euro Dark Pool Trading as They Brace for Brexit Surge

(This article originally appeared on Bloomberg)

 

Banks are reducing trading in their dark pools, anticipating a surge in volume after Britain’s vote to leave the European Union.

Deutsche Bank AG temporarily shut off outside market makers in its dark pool, SuperX, according to people familiar with the matter. The bank told outside market makers that they would be prohibited from trading in SuperX on Friday, until the bank notified them it was ready to resume. Large institutional orders can still be matched in the pool.

Bank of America Corp. asked some outside trading firms to cut their messaging volume by half, said the people, who asked not to be named because the announcements were not public.

Amanda Williams, a spokeswoman for Deutsche Bank, declined to comment. Selena Morris, a spokeswoman for Bank of America, did not immediately return phone and email requests for comment.

The measures come as U.S. markets brace for a wild trading day on the heels of the British vote. Morgan Stanley’s dark pool, also known as a broker-crossing network, wentoffline for a period in London earlier Friday. The pool has since gotten back up and running.

Related articles

  1. Brexit Muddles Future of UK-EU Linkage

    European firms could operate temporarily in the UK after Brexit while seeking full authorisation.

  2. Brexit Muddles Future of UK-EU Linkage

    The total value of UK financial services exports remained stable in 2020.

  3. Brexit Muddles Future of UK-EU Linkage

    Temporary equivalence was set to expire on June 30, 2022.

  4. Bank of England Endorses SEFs Ahead of European Clearing Launch

    The Bank has new powers for reviewing CCPs following Brexit.

  5. Restricting access to London CCPs would result in collateral damage for EU banks and end users.