Market trades are leaving Wall Street stock exchanges….

You read that right….

And your government has not stepped in to regulate those trades…..

So when you see info on CNBC on the market….

You’re only seeing a little more than half of what’s going on…..

Investors also have said that they have moved more of their trading into the dark because they have grown more distrustful of the big exchanges like the N.Y.S.E. and the Nasdaq. Those exchanges have been hit by technological mishaps and become dominated by so-called high-frequency traders.

But the biggest factor pushing trading away from the public exchanges is the ongoing decline in volatility in stock prices, traders say. When share prices are rising or falling sharply, investors want to quickly and reliably get their trade done, leading to a preference for the safety of an exchange. In calmer trading, on the other hand, the anonymity of dark pools is more attractive. What’s more, dark pools are generally cheaper to use than an exchange.

Other places besides the 30-plus dark pools are stealing the business of stock exchanges. A handful of firms including Citigroup and Knight Capital pay retail brokers like TD Ameritrade and Scottrade for the opportunity to trade with ordinary retail investors before the orders can reach an exchange, a phenomenon known as internalization. This type of off-exchange trading has also been growing, in part because of the recent revival of interest in the stock market among ordinary investors.

In recent weeks, internalization has accounted for about 60 percent of off-exchange trading and dark pools for about 40 percent.

The complicated structure of the stock markets makes it hard to get reliable numbers on the exact amount of trading going on in the different entities. Some operators of dark pools say that the most widely used numbers misrepresent the amount of trading going on in the dark, and ignore the fact that on public exchanges some types of trading happen out of the public eye…..



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