ICAP Hires JPMorgan’s Daemon Bear to Head ‘Dark Pool’

Source: Bloomberg

ICAP Plc, the world’s largest broker of trades between banks, named Daemon Bear to set up and lead an alternative trading system and so-called dark pool for stocks.

Bear, previously head of equity trading at JPMorgan Chase & Co.’s asset management unit, will join the company in early January 2009 as head of Blockcrossing. ICAP confirmed Bear’s appointment and plans for the new electronic platform in an e- mail today.

The system for banks and fund managers will be created specifically to handle large blocks of shares and act as a dark pool that won’t display prices. The company wants to develop a multilateral trading facility by the second half of 2009, said a person familiar with the plans yesterday who declined to be identified because the plans weren’t public at the time.

London-based ICAP, which in 2006 ended merger talks with London Stock Exchange Group Plc, joins other so-called MTFs including Chi-X Europe Ltd., Turquoise, Nasdaq OMX Group Inc. and Bats Trading Inc., all of which aim to take market share from the traditional European stock exchanges. ICAP will focus on offering a dark pool.

Institutional investors are increasingly turning to dark pools, which compete with bourses including the New York Stock Exchange, LSE and Nasdaq OMX and allow investors to disguise their strategies. The systems match orders anonymously and don’t publicly disseminate quotes. In Europe, they are proliferating along with alternative exchanges as new rules spur competition and demand best execution for customers.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=asoif3sAZEQk&refer=home

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Get the drift?

Secondly, this is something that has to be headed off immediately.

all the criminals running that conspiracy to defraud and steal.

........need to get their asses together and put in rules to regulate this mess. This sounds like that these "entities" are trying a new shell game after the last one fell apart. It's the wild west of economics, welcome to fucking Dodge City.

Hey!?! Where's everybody going?!?

:evilgrin:

Godless Killing Machines.

All this will do will ensure the traders can manipulate the market even further and do it legally. Just appalling. Keep in mind the legislation that "deregulated" the economic system, specifically the derivatives market, was introduced by Phil Gramm. But signed into law by Bill Clinton. And what does Chelsea Clinton do for a living again?

If there need to be private arrangements between large financial institutions, do it with controls and SEC oversight.

On Edit: "Daemon Bear"? My God! If that name was given to a fictional character, I would think the writer was being childish.

Damon Bear? Couldn't they get someone from the Federation?