"A dark shadow sweeps over Asia…"

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ark pools of liquidity could be on their way to the Hong Kong mainstream, and one of those pools is potentially being set up in Singapore this year. Is Asia catching up to the US and Europe in this shadowy arena?

Risk magazine has the story on an intriguing arms race in Asian equities innovation:

The Singapore Exchange (SGX) plans to launch Asia’s first exchange-backed dark pool in a joint venture with Chi-X Global, an affiliate of Chi-X Europe, the biggest pan-European equities multilateral trade facility, in the second or third quarter. However, [HKEx COO] Greiner says the creation of a joint venture model to offer dark pool facilities is one of the many possibilities the HKEx is considering…

…Greiner’s comments fall short of providing firm plans, but appear to represent a more accepting attitude towards dark pools compared with comments made by HKEx chairman, Ronald Arculli, in December last year. Arculli said dark pools risked jeopardising fair price discovery for investors and the level playing field afforded by trading on exchanges.

But as the Risk story also makes clear, Asian regulators (and indeed, exchanges) aren’t quite convinced of the proposition – echoing, we might add, a veritable chorus of regulators in Europe and the United States.

Broadly speaking, regulators are in favour of exchange-based trading for dark liquidity – an idea which is gaining traction.

more here - http://ftalphaville.ft.com/blog/2010/03/12/173736/a-dark-shadow-sweeps-over-asia/

How long before existing global hedge funds, big banks, and specific individuals own all of Asia's wealth? Buy politicians?