The FCA has published an occasional paper on the aggregate market quality implications of dark trading. Occasional papers contribute to the debate on specific issues relating to the FCA’s work but do not necessarily represent its official position.

One of the key findings is that there is no negative effect of dark trading on market liquidity until its value as a proportion of total trading value exceeds 15 percent. The suggestion is therefore that the envisaged 8 percent cap under MiFID II is likely to be too low if the focus is on market quality.

Read the FCA occasional paper.