90.9 WBUR - Boston's NPR news station
Top Stories:
PLEDGE NOW
Private Stocks And 'Dark Pools' In American Finance

Dark pools – private stock trading platforms not available to the public – are under investigation by the SEC. We look at inequities in the stock market and what they mean for public investors.

In this file photo, Securities and Exchange Commission (SEC) Chair Mary Jo White attends the meeting of the Financial Stability Oversight Council (FSOC), Thursday, April 25, 2013, at the Treasury Department in Washington. (AP)

In this file photo, Securities and Exchange Commission (SEC) Chair Mary Jo White attends the meeting of the Financial Stability Oversight Council (FSOC), Thursday, April 25, 2013, at the Treasury Department in Washington. (AP)

We don’t want to be “shocked, shocked” that the US stock market is not kindergarten.  That just maybe not everything is perfectly fair and clean and open at every moment.  We get that.  On the other hand, Wall Street is supposed to be the great engine of American investment.  And it is where an awful lot of people’s savings – one way or another – end up.  College savings.  Retirements.  And they expect the system not to be rigged.  But maybe it is.  Everybody’s talking “dark pools” these days.  This hour On Point:  Wall Street’s “dark pools” – where you don’t know what’s going on.

– Tom Ashbrook

Guests

Scott Patterson, financial regulation reporter for The Wall Street Journal. Author of “Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market.” (@pattersonscott)

Joshua Brown, financial adviser at Ritholtz Wealth Management. Author of “Backstage Wall Street” and “Clash of the Financial Pundits.” (@ReformedBroker)

Shah Gilanicontributing editor at Money Morning and the Money Map Report, contributor at Forbes. (@theShahGilani)

From Tom’s Reading List

The Wall Street Journal: ‘Dark Pools’ Face New SEC Probe — “The Securities and Exchange Commission is investigating a number of big ‘dark pools,’ according to people familiar with the probes, as stock-market regulators ramp up pressure on the private trading venues. Investigators are exploring whether the trading systems are properly disclosing to clients how they operate, treating all investors fairly and protecting confidential client information, among other concerns, the people said.”

The Reformed Broker: “The stock market is a giant distraction to the business of investing.” – “The stock market is a derivative of the value of corporate America. The intrinsic value of a corporation can be estimated by the dividend yield when you purchase the stock and the subsequent earnings growth. It is corporate America that creates value; the stock market itself creates none. In fact, the stock market subtracts value, due to all the costs we pay to play the game. It’s a little bit like the casino, one might say. And I say that advisedly.”

Bloomberg: Dark Pools Take Larger Share of Trades Amid SEC Scrutiny — “Shares changing hands in private venues such as dark pools accounted for 40.4 percent of total share volume on June 10, according to data compiled by Bloomberg. That’s the most since 41.7 percent took place off-exchange on June 22, 2012. The three biggest exchange companies each matched about 20 percent of trading on June 10.”

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
Mar 27, 2015
Rescue workers work on debris of the Germanwings jet at the crash site near Seyne-les-Alpes, France, Thursday, March 26, 2015. The co-pilot of the Germanwings jet barricaded himself in the cockpit and “intentionally” rammed the plane full speed into the French Alps, ignoring the captain’s frantic pounding on the cockpit door and the screams of terror from passengers, a prosecutor said Thursday. (AP)

The co-pilot and the plane in the Alps? Ted Cruz announces 2016 bid. Heinz buys Kraft. Our weekly news roundtable goes behind the headlines.

Mar 27, 2015
Members of  a November Project 'tribe' pause during a November 2014 workout. (Brogan Graham / Instagram)

Spring training. From easy-access yoga to outdoor exercise meet-ups, exercise plans you’ll want to do.

RECENT
SHOWS
Mar 26, 2015
A child walks through a forest landscape. (Rudolf Vlček / Flickr)

American kids today spend only four to seven minutes a day playing outdoors. We hear a new call to raise the “wild child.”

 
Mar 26, 2015
In this file photo, protesters sit at the intersection of Wall St. and Broad St. in New York, Monday, Sept. 22, 2014. The protesters, many who were affiliated with Occupy Wall Street, were trying to draw attention to the connection between capitalism and environmental destruction. (AP)

In our age of hyper-inequality, historian Steve Fraser asks when the little guy stands up and says “enough.” He’s with us.

On Point Blog
On Point Blog
Mobile Payments Offer Convenience If You Keep Your Email Safe
Thursday, Mar 26, 2015

Thinking about moving your wallet to your phone? You can! And maybe you should? But TechCrunch senior writer Josh Constine has a few things to tell you before you do.

More »
1 Comment
 
Using Technology To Get Your Kids Outside
Thursday, Mar 26, 2015

The latest and greatest — using apps to make natural exploration more fun for your kids.

More »
Comment
 
Week In The Web: March 20, 2015
Friday, Mar 20, 2015

The emailed comments question continues to haunt us, we shake off / salute our haters and CNN Politics spends way too much time on FinalCut (in a good way!).

More »
Comment